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Dont Duplicate Differentiate

Dont Duplicate Differentiate

In today’s increasingly competitive marketplace, the demand for specialized products and services has also increased.

If your business sells everything to everyone, chances are that your audience will not see any reason (eg. greater value) to buy from you rather than anyone else. In an homogenous market, price becomes the only metric by which visitors can compare you to others.

When Price is all That Matters…

When you compare apples to apples, the only point of comparison is price, as this is the only real, visible distinction between the apples from two different suppliers. Thus, if your product’s value is perceived as equal to that of others, naturally the cheapest alternative will win.

Price in itself is not important — it’s merely an arbitrary figure that represents the value of an offering. It only becomes an issue when there’s no other factor that the customer can use to gauge your product’s value. Of course, price is not the only metric. But most people understand units of dollars more than they do value, which is a more subjective concept. Therefore, if your offering’s too similar to those of your competitors, price will always be an issue.

Economics shows us that these rules are true:

* The more unique you are, the less competition you will have.
* The less competition you have, the less substitutable you (or your product) is.
* The less substitutable you are, the less elastic the demand for your product will be
and therefore, the less important price becomes.

So, if you’re copying your competition, or trying to promote your offering as one that’s better than those of competitors, you’re only reminding people of that which you are better than: your competition. So, don’t duplicate, differentiate! Or as Earl Nightingale once said, “Don’t copy, create!”

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1 Comments

  1. Paul

    Responding to your second point, I dont agree more with ” if your product’s value is perceived as equal to that of others, naturally the cheapest alternative will win”.

    You can even charge more than your other competitor if you add “value” on your service. Value added service is a way that you can implement to beat your competitor especially when same service is offered by similar competitor.

    On second look VAS need is crucial when it is very difficult to identify the business opportunities due to the different requirement of different customers as:

    Different cost and price structure.
    Different patterns of usage/design
    Different marketing needs & opportunities.
    Different technical requirements

    Service providers fail to identify special service needs at an early stage, hence it is important to identify the need of special service as you start growing and competing with others service providers which you consider apple to apple.

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