Lowest Price

It is very unlikely you can afford to be the low price leader. If you are competing in you market on price alone it is unlikely you are producing the quality or service that leads to long term repeat sales and referrals.

If you looking for a cheap pair of shoes you can go to the big box store and find a pair of shoes for less than ten dollars. You will have to look through all the boxes on the shelves and if you size is not on the shelf then you cannot get it.  It is likely the shoes will not last very long and may hurt your feet but they are cheap. The store will tell you that the cheap prices are because they buy in bulk to control the price which is true. But because they price comes first quality and service suffer.

If you want a quality pair of shoes you go to a store specializing in the shoes you want. You will have a salesperson trained to help you find the shoes and try them on. The store will have back stock with more sizes. The shoes will look better longer, fit better and wear longer. You will pay a higher price at the time of sale but you received better service and better value.

Price, service and quality are like the legs on a three legged stool. If the legs are not all equal the stool falls over. No one can be the lowest price and have the highest quality and service. That is not to say that there cannot be different levels of quality and price. You can buy an economy car or a luxury car. The level of the quality is matched by the level of service and price.  If your customers believe they can buy a luxury product for the price of the economy version it is your challenge to educate them on your quality.

Sales in any economy is about educating the customer about the value of the product you offer. In a difficult economy where consumers feel that companies need their business it is even more important.  You need to understand you unique selling proposition and all you quality features.  You need to present them to potential customers in simple and unthreatening way that does not bore them or turn them off.  

As Aldo Gucci said, "The bitterness of poor quality is remembered long after the sweetness of low price has faded from memory.”

Original Content copyright 2010 Thomas Robinson