Price and Value Are Not the Same Things.
I was on Warren Greshes’ blog today and I found a very compelling 60-second video about price as a model of product comparison. The short and sweet of it is this. It is easy to compete on price alone. That is why so many people do it. It takes very little effort to reduce the price. Legendary customer service, on the other hand, is easy to talk about but much more difficult to put into practice. If you want to excel in sales, marketing, or any other business you need to find some way besides price to separate yourself from the pack. The four things he talks about are quality, service, convenience, and value.
Starbucks is a great example of a company that really takes these four principles to heart. They offer one of the most expensive cups of coffee you will buy anyplace, but they frequently have a line out the door. They have focused on very high-end coffee grown by socially responsible growers and are known the world wide for quality coffee. As for convenience… they are every place! On my way to work I pass one intersection with a Starbucks on three of the four corners! The service at Starbucks is outstanding. Have you ever spilled your drink? If you do they will replace it free! They will also do that if you do not enjoy what you ordered. And finally, value… Starbucks gets customers to pay three to five dollars for a .50 cup of coffee because they help their customers see greater value in what they sell and the experience that is Starbucks.
It is important to remember that we may not have the least expensive product on the market. If that is the case we need to find other ways to separate ourselves from the pack and place emphasis on other things that are more difficult to compete with, such as customer experience, quality, convenience or value.
Thank you, Warren for a reminder of what’s really important in business!