Don’t Duplicate Differentiate

Don’t Duplicate Differentiate

In today’s increasingly competitive marketplace, the demand for specialised 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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