How SMBs Can Compete on Value, Not Just Price

Quick question: As a small business owner, what do you focus on competing on - value or price? If you said the latter, this post is a must-read for you. When it comes to price vs. value, most SMBs resort to price by discounting their offerings or announcing frequent sales now and then. You may think these tactics will attract more customers and get you more business, but eventually, they will only hurt your business in the long run. So, instead of slashing down product prices, compete on value. If you’re intrigued by this, here's how to get started:

Quality Beats Everything

First, ensure that your products and services are of the highest quality. Focus on the materials used to produce them, process transparency, packaging, and the end product. If you have high-quality products in your range, you can price them high, knowing that you are giving your customers value for their money. If they like what you deliver, they will become your returning customers regardless of the cost.

A good example is Zingerman's Delicatessen. It was a small gourmet food business that became big based on the value it provided to customers. They offered unique, artisanal products made from locally sourced ingredients.

Likewise, Sweetgreen, a fast-casual salad chain, earned people's trust and respect by focusing on the concept of farm-to-table food. They sourced ingredients from local farms to deliver quality and organic vegetables to people. They focused on building healthier communities by connecting people to real food.

Excellent Customer Service Wins Loyalty

Another way to deliver value to customers is through excellent service. Everybody wants a stress-free and smooth shopping experience, and if your brand can provide that, you can easily win their loyalty. They will return to your brick-and-mortar or online store because of the excellent service experience and because they know you value them. So, strive to provide quality service when they contact your business. Assist them step by step to ensure a hassle-free experience. Make sure to be available for them even after sales.

For example, Warby Parker, launched in 2010, is an SMB focused on excellent customer service. They provide high-quality glasses and the Home Try-On program, which focuses on making the customer shopping experience convenient and pleasant by allowing customers to try frames at home for free.

Customer Reviews Attract Prospects

When it comes to cost vs. value, never underestimate the power of customer reviews. What customers say about your business products and services can make a huge difference. So, to attract more prospects, talk about the value you offer through customer reviews and testimonials. This will show prospects why your products are worth every extra dime spent.

Wrapping Up

For more information about price vs. value or to learn more ways to compete and provide value to customers, contact Refresh Ideas. We are an experienced and trusted team of digital marketing specialists. We can position your brand for success. Schedule a consultation today.