March 31, 2008
7 Ways Differentiate Yourself from Your Competition and Avoid the Price Wars Forever
One of the most common complaints I hear these days from small businesses struggling to grow is that they can’t get anymore customers because they’re up against others that are willing to sell the exact same service at a cheaper price.
For example, what one hard working lawn care operator charges for a typical cut, edging, and blow, a potential customer might be able to get the exact same service for almost half the price from the kid down the street that’s simply trying to earn a few extra bucks.
So what can a serious-about-growth business owner do to overcome this challenge without resorting to low-ball pricing tactics?
Well, the first thing that needs to happen is they need to understand that if the only differentiating factor is the price, then prospects will ALWAYS go with the cheaper service. Again referring to the previous example, because there’s nothing that separates the two options the prospect has to choose from, they will almost always select the cheaper option.
Do you really expect to spend more for the exact same service?
So, the key to overcoming this pricing challenge and eliminating the discussion of price is to differentiate your products and services in the eyes of your potential customers.
Now, there are countless ways you can differentiate your business from your competition, but here are 7 specific ways you can very quickly set yourself apart from your competition and eliminate the need to compete on price:
1. Add more value to your products or services.
Adding additional services such as free mulch or pine straw in flower beds, free shrub trimmings, or free lawn stripping is a great way to differentiate you from your competition. While these services do add to your overhead, the cost should be minimal and the amount of new business you gain because of them should more than outweigh the additional expenses you incur.
2. Exceptional customer service
In today’s marketplace, customer service is severely lacking. So by going above and beyond by providing post service summaries, or by walking your customers property once a month, or by returning customer phone calls within 1 hour will go a long way towards differentiating you from your competition.
3. Become a specialist
People like to work with THE BEST. They like to know they have the most qualified person on the job, so by focusing on one area and becoming a specialist in that specific area, the process of selling your service becomes infinitely easier.
As an example, if a prospect is interested in having an irrigation system installed, your chances of landing the job are must better if your specialty is irrigation, instead of being a lawn care guy that also provides irrigation install services.
4. Provide one-stop solution
Now, while this goes against #3 above, it can also be a great differentiating feature if you can take care of ALL your prospects needs. That way, they don’t have to worry about going through the hassle of finding another service professional because they can get all their problems handled by you.
An example of this might be a full service lawn care company that in addition to the typical mow and go services, also offers fertilization, weed control, pest control, as well as plant maintenance services.
5. Specialized training or certifications
People prefer to work with experts and even though you may think specialized training or certifications are ‘no big deal’, your prospects view these as ‘seals of approval’ so don’t be shy about letting them know of any extra education or training you might have.
6. Relationship or affinity
If you really don’t have anything that differentiates you from your competition, you might consider tapping into a special relationship you have with your prospects. Even though this isn’t the strongest method of differentiation, people still prefer to do business with people they like and if you have something in common with them, it may very well be enough to give you the edge over your competition.
An example of this might be the simple fact you’re a ‘local’. Many people are loyal to their community so the fact you’ve been doing business there for the past X number of years could be a compelling reason to select you.
7. Risk reversal
Buying anything involves risk and it causes concern with everyone. In fact, it’s because of this that most people buy based on price because the cheapest option typically involves the least amount of risk.
Well, when you offer things that help remove the risk like satisfaction guarantees, bonuses, or premiums, you eliminate much of this concern, which in turn helps prospects to make the buying decision much easier.
So, if you find yourself struggling to win new business because you’re losing customers to the low cost, low quality alternatives, examine your offering and see if you can’t differentiate it better using any of these 7 steps.
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Using time tested, proven direct response marketing principles, Chestin Salisbury and Lawn Care Marketing Magic have the tools, resources, insights, and information required to help any green industry business cheaply acquire more new customers, effectively hold onto the ones they have, and effortlessly convert these customers into raving, loyal-for-life fans.
You can claim a FREE copy of the informative reports, ‘7 Steps to Dominating Your Target Market in 21 Days or Less’ by visiting www.FREELawnCareMarketingSecrets.com.
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