How to Out Sell Cut-Rate Competition

‐ July 23, 2015

Are you running into competition that under cuts you? Are you finding your margins shrinking and the demands for better service increasing? Do you have a way to stop your cut-rate competitors in their tracks and sell more quality business?

Out Sell Cut-Rate Competition

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Most businesses today have more than enough competition. If you are like me, you have many competitors who think the only thing they have to do to get more business is sell it for cheaper. This formula works in theory, but eventually you run out of bottom to sell at. Selling price and item only is like being a gun fighter in the old west—no matter how cheap you sell it for there is always someone else who will sell it for even cheaper.

What is the best way to market against bargain basement competition and still show value? Buyers today want a great price but according to a recent survey, price was ranked number five on a list of the reasons people use when they make their buying decision:

  1. Solution – People are buying a solution to a problem they have. How nice the solution is depends on many factors, but it basically boils down to prestige and image the buyer wants to achieve. With some products, people will pay 5x the price for the same product just because of brand and image but that is a discussion for a later article.
  2. Creditability – People want to buy from a company who is reputable and will be there for service if they need it.
  3. Value – Buyers want to feel what they are buying is worth what you are asking. How are you demonstrating your value?
  4. Convenience – Can you demonstrate how you make it easier for the customer to buy and use your product?
  5. Price – People do not want to over pay, but will pay more if you can demonstrate the above four points to them.

The easiest way to accomplish the above five points and to out sell your cut-rate competition is with a targeted point-of-sale promotional materials and literature. Two points to mention about your sales literature:

  • What is printed is true. People will believe what you have to say if it is written. If you lie or stretch the truth in your printed materials, your lie is in print.
  • Form, format and purpose are vital to designing effective sales literature.

What To Do First – Fill the Void – Printed Sales Brochures

Point-of-sale brochures should present the problem and demonstrate how your product or service solves the problem. Show the benefits of what you do. Use colorful photos and verbiage that is easily understood. A professionally designed brochure helps build your company brand and with it your creditability.

Validation Brochure

This is a special type of brochure that educates your buyer. The validation brochure is the tool you use to discredit your cut-rate competitors by building questions in the mind of the buyer about potential quality and delivery problems from buying a cut-rate price product from your competitor. For example, if you have a HVAC company, your brochure might be: “17 Things You Must Know Before You Buy a New AC Unit.”

Try to use an odd, attention getting number. Avoid “Top Ten” lists. Keep in mind that the 17 things must be benefits that separate you from your competitors. One of the 17 points in your brochure might say, “A good AC unit is only as good as the coils and condenser. Less expensive AC units cut cost by using cheaper coils and condensing units. You can’t see this now, but five years down the road when you are replacing your unit you will wish you would have paid a little more on the front end.”  You build value and educate the customer with out knocking a competitor directly.

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Positioning Brochure

This brochure is used to position your company better than the other choice they have available to them. Positioning brochures allow you to build value and justify your pricing. Positioning brochures also help the buyer to validate why they are choosing your company.

Brochures allow you to educate your customer and separate yourself from your competition. The money you spend on hiring a professional marketing company to help you create the perfect sales tools will pay off 10 fold as you watch your profit margins grow.

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