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Pricing Power or Lack
Thereof
Four Ways to Make Sure You Are Not Just a Commodity
 An expert once told me if you have the best customer
service you can charge more. I have also been told by prior
employers that if I worked hard and had great quality I would be
rewarded. I found out these are half-truths! It
depends on who your customer is, your customers' financial position
and who your customers depends on. Additionally, does your
customer value you or are you just a commodity?
The following guidelines will help you make that
determination.
Understand your Customer
Does your customer want to purchase something from you? If so, they may view
you more as value. Do they have to purchase something from you? If so, they many view
you as a commodity. Extra effort may be required to prove your value.
Working Hard Means Nothing, Working Hard Means
Everything
If working hard leads to a better product or service
you can be proud of the quality and value you have delivered. If your
customer leaves you for another provider because they found someone
cheaper then your hard work is for naught. You need to target
customers who have gravitated towards you and respect your values and
philosophies.
Never be Afraid of losing "Bad Customers"
This will free up your time in the long
run to spend more time with the customers who appreciate you. You
will not incur the stress of trying to satisfy someone who you will
not be able to make happy.
Understand your Customer's Financial Stress
Is your customer under financial stress? Is your
customer in a financial hardship (business not going well, living
outside their means, etc.)? If so they want to live a champagne
lifestyle on a beer budget. To do this they must bargain for
discounts or not pay their bills or disrespect you until you reduce
your price. Your customer will tend to favor price and view you as a
commodity because they cannot afford value.
To discuss and learn more about your customer and your
customers' customers give us a call.
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