Some companies succeed because they offer products and services that are cheaper than the competition. Bob’s Discount Furniture, Geico and Walmart are built on the concept that the product you get is cheaper than it would be anywhere else. If you, or your company, want to get the message across that customers should choose you because you’re the least expensive option, here are 5 easy steps to get you started.
1. Know the Language
Notice that the title of the blog post is “Marketing Inexpensive..” and not “Marketing Cheap…”. It’s that way for a reason. “Cheap” has a negative connotation is most people’s heads. “Cheap” means poor quality. If you’re marketing something that costs less than the competition be careful with the language that you use. “Inexpensive”, “affordable”, “low cost” are all preferred terms that get the point across.
2. Sell the Reason
You know why you’re cheaper than the competition, but what about the consumer? The fact that you’re able to market and sell a product for less than your competitors is great, and you should be proud of it. Share the reason with your consumer in your marketing. “We’re able to do this because we grow all of our food on location” or “we use the most cost effective transportation methods available, and we transfer that savings to you”. Bob’s uses television commercials to really push this concept.
3. Sell the Comparison
Many times I advise companies not to use direct comparisons with other companies in their advertising. But if the marketing message is based in large part around price, it can really drive home your point when you show how the competition’s prices stack up. Use graphics in promo material and on your website that show how much a consumer will save if they choose you. Insurance companies all do this, some better than others.
4. Don’t Skimp on Service
Companies who are able to sell at a lower price than the market average have to look for ways to save money in other areas. Don’t let customer service suffer because you need to save money. A sure fire way to ensure future customer blowback is to skimp on the service aspect of your business so that you can offer lower prices. Save yourself a headache later and keep your service top notch.
5. Watch the Competition Closely
Being the cheapest can work. But if that’s the only reason that customers choose you, watch out. Price is a very easy thing for your competitors to copy. As soon as someone else comes along and offers prices equal to, or lower than, yours, you will need to give customers a whole new reason to stick around. So keep an eye on what the market is doing at all times.