How can you get more customers without lowering your prices? Here is a surprisingly simple strategy to use price to your advantage.

my competitor is underchargingHow would you handle a situation where you are losing business to a competitor who is undercharging for your products or services? Perhaps you have watched your already thin profit margins shrink even further. Must you continue to choose between accepting sales barely above break even, or risk getting no new business at all?

How can you reclaim some of your market share AND get away from price wars?

Many of you are facing that situation daily. In this tight economy, where it seems every consumer is pinching pennies and squeezing deals out of every transaction, companies all around seem to be giving away the farm. How can you compete and still make a decent profit?

Here is an old adage that is as true today as it ever was: Every challenge has a hidden opportunity… if you know where (how) to look for it.

What One Shop Owner Did
how to increase my salesCase in point:

The story’s told of a small-town barber who was doing well until a big hair salon moved in across the street.

Uh-oh.

The big salon blitzed the area with signs: “EVERYTHING FOR A DOLLAR. Dollar haircuts! Dollar perms!

Everything for a dollar!”

If you were the small-town barber, what would you do?

Consulting With An Expert
In despair, he hired an marketing and advertising expert. “What do I do? How can I compete against this big salon? How can I compete against dollar haircuts? If I match that, I’ll go out of business. If I don’t, I’ll go out of business for lack of customers.”

What would you tell the barber?

The marketing expert understood that how you position yourself (and how you position your competition) is crucial.

The marketing expert had a giant sign erected on top of the barber’s shop. In big, bold letters were the words: ‘WE FIX DOLLAR HAIRCUTS!’

And The Moral Of The Story Is…
You see, in life, you often get what you pay for. People instinctively know this because they have had many instances in their lives where they chose cheap… and regretted it. Regret is a powerful emotion.

As I mentioned in my earlier blog post about the fascinating way Allstate and State Farm insurance are taking advantage of the fears of prospects, if you remind your prospects ahead of time about the potential consequences of their choices, they will often look at the situation in a different light.

Paying For A Regret-Free Life
People will pay more for peace of mind. They will almost always choose a predictably good outcome over a “deal” that is almost too good to be true.

It often is… and they are not willing to take that chance.

For more great ideas on how to market your business, visit 2ndMileMarketing.com and pick up one of our free reports. They are loaded with powerful insights on how you can take lemons… and make lemonade.

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