If so…
…should they be?
If I had a nickel for every time a business owner told me that he or she needed to be competitive, I’d need a vault larger than Fort Knox to house them. Should ‘being competitive’ be a goal?
Not according to Richard ‘Mack’ Machowicz. In his book, Unleash the Warrior Within, this former Navy Seal says “We (Navy Seals) don’t train to fight, we train to win.”
Applying that concept to business, pricing to be competitive is the equivalent of training to fight. Creating exceptional value (buyers’ perception) and charging premium prices for that value is training to win.
It’s counter-intuitive, but choosing to be competitive is choosing mediocrity. If that satisfies your needs, stick with it. It’s not my intent to dictate your lifestyle; that choice is yours and yours alone. As it should be.
But if you’re tired of working your tail off and getting less than you desire from life, if you’re interested in winning instead of competing, create value that buyers’ are willing to pay premium prices to get and price your offerings accordingly. How?
The simplest way to do this is look at your customers’ annoying behaviors, discover what you’re doing that contributes to their behavior and fix it. We live in a reciprocal world. If I treat you well, you’ll treat me well. If, however, I frustrate you, you’ll find a way to balance the scales. By removing your contribution to the frustration, you and your customers will enjoy a longer, more mutually-rewarding relationship and they’ll pay a premium for whatever you’re offering.
There is a downside, however, you’ll no longer be competitive.