Small business face a lot of competition these days, and there are many ways to fight with all the top competitors in the market. In attempt to keep up with competition, small businesses are tempted to either give discounts, or sometimes lower down their price that directly may compromise the quality of service or product. Is giving a discount or lowering the price the only solutions? There must be some ways by which small business can still compete without having to fall for the “discounting trap”. Here are three ways of doing so:
- Value for Money. Not all customers are just looking for lower price. They are looking for the best quality at a price that they can afford. So it is wrong to think that just because you lowered the price, they will surely buy a product or avail a service. They might bite the bait at the first try, but there is also a higher chance that they will forego your availing your product or service for a better quality offered by a competitor. So what must you do as a small business? You must think of ways by which you can provide them with a product or service that is “value for their money”, that is to offer them with best quality, while still gaining a decent profit. When you offer good quality, it will not matter if the price may be a bit higher than many competitors. The good quality of your products will definitely set you apart from the rest.
- List the features of your product, but highlight the benefits of your products. Instead of merely giving discounts, especially highlight the benefits of your products or service, which is also similar to number one: “value for money”. Customers are always looking for ways by which they can enjoy more benefits from products. Did it make their life easier? Did it satisfy their needs? Is it something that they will definitely buy or avail again? Did it solve a problem for them? These are just some of the questions that you will need to address as you think from the customer’s perspective.
- Engage your customers by asking for feedback to build a good reputation. A negative or positive feedback can greatly impact your business. So it is important that you get feedback from customers. Provide quality services, and aim to get a lot of positive feedback from customers. This will be part of your branding, and once you have built a good following, word gets around and people will come for your products itself because of its good reputation.
As a conclusion, there are many other ways by which small business can compete in the market while avoiding the “discounting trap”. Providing discounts to promote your business is not bad, but it should not be habitual or compromise the quality of service offered.