I saw an interesting ad for Morrisons a few days ago. An ad to tell us that any price difference between them and their fellow supermarket was refunded immediately if their [Morrisons] costs were higher.
Sainsbury’s give you a voucher at the till to redeem off your next shop. And I’m sure the other supermarkets do something similar.
As this essentially has the effect of making all the supermarkets’ prices the same, what do they now have to compete on? One tin of baked beans being pretty much the same as another tin of baked beans….
Well, it never is about price. Value, yes, but not price. But what does value mean to you? I was watching something a couple of days ago on billionaires. Cars for $20 million, houses for $25 million plus, earrings for £475,500 (it’s a shame I don’t have my ears pierced, otherwise I might have been tempted…), and a £150,000 bill for champagne for a wedding. No competing on price here then!
Their idea of value may well be in a different place to yours and mine, but it’s still a value they’re after.
But what IS this value? For the billionaires, this value is to look good, to be seen with the best, or to associate themselves with the right people. For the rest of us it’s because of a somewhat elusive feeling that you get from buying a particular product or service. It makes you feel good, it solves some kind of problem, need or want you might have.
If you want something enough, price is rarely an issue.
If you identify with the person or organisation selling what you want to buy, price is rarely an issue.
If you have a big enough problem or issue, and it’s painful enough, there will be no pricing issue in making that go away.
We all buy for emotional reasons. They may be BIG emotional reasons, or minor ones, but emotional they will be. Whatever it is we’re buying will fulfill a need or a want (its function) but in most cases the ultimate decision on whether to part with your hard earned cash will be based on emotions and feelings.
So our supermarkets now have to work hard at relating to us, our emotions and how we feel. Not all of us though…every supermarket brand attracts a different type of person. In understanding their target market, the supermarkets will be able to target their emotionally based messages directly to the nerves of the people who shop there.
And through communicating their values and “what they’re about” (aka their value) they may be able to attract new customers along to their stores – ones who feel that they can identify with the supermarket that’s managed to cut through all the other marketing messages and reach them emotionally.
It will be interesting to see what messages they come up with.
Meanwhile, what message do you communicate to your target audience about your business? What are YOU about? What do you believe in? What are your values? What will make your clients identify with you? What problems and issues do you make go away for your clients? What do they REALLY want in their life or business that you have, or can give them through your coaching or consultancy work?
Work those out and pricing will never be an issue for you and your business again.
And if you struggle trying to work this out for yourself for your business, arrange a no obligation Marketing Insight Session by clicking this link, and let’s see if we can help you create the value for your business.
Dedicated to your success