When you compete on price, your business becomes marginalized, your customer loyalty diminishes and your profitable days become numbered!
Portsmouth, NH (PRWEB) February 22, 2012
On Tuesday, February 21, 2012, shares of Wal-Mart fell 4% even as the company desperately attempts to win back their price sensitive customers. This is a good lesson for entrepreneurs and small business owners that routinely believe that they need to slash their prices in order to compete. Marketing expert and founder of PredictableProfits.com, Charles Gaudet, says that this ‘Wal-Mart’ approach to pricing is a deadly proposition.
“When you compete on price, you get low quality customers, reduced profits and almost non-existent customer loyalty,” says Gaudet. “These people will drop you like a dime the moment someone offers them a cheaper product and, unfortunately for these businesses competing on price, there’s always someone who’s willing to offer a less expensive alternative.”
In fact, even the retail behemoth, Wal-Mart, has become a victim of the price strategy that made them famous. According to a recent survey conducted by WSL Strategic Retail, 86% of shoppers no longer believe that Wal-Mart has the lowest prices and the company posted nine consecutive falling quarters through December of last year.
“People buy for other reasons than price. While we’re seeing our price competitor Wal-Mart struggling in this economic environment, we’re also seeing higher priced companies like Nordstrom achieving their highest sales in company history last year,” says Gaudet.
Here are 3 tips that Gaudet recommends on how entrepreneurs and small business owners can out-compete their competition without focusing on price:
1. Offer a Better Buying Experience.
2. Offer Better and Higher Valued Service.
3. Offer a Better Guarantee.
Gaudet states: “When you compete on price, your business becomes marginalized, your customer loyalty diminishes and your profitable days become numbered!”
For more information on how to improve your marketing and position your company as a leader in the market, please visit http://www.PredictableProfits.com
ABOUT CHARLES GAUDET: Gaudet started his first business at just four years old and has been involved in entrepreneurial enterprises ever since. Upon finding himself in millions of dollars of debt and under enormous stress at the age of 24, he and his wife systematically grew their first multi-million dollar company. Gaudet has traveled much of the world studying from business, political and social leaders studying entrepreneurial, marketing and business excellence.
He is the creator of the Predictable Profits(TM) Method for Entrepreneurs and Small Business Owners and widely regarded as a marketing expert for consistently delivering windfalls of profits to his clients by unveiling opportunities that have been previously under-utilized or have gone unnoticed.
He is the founder of PredictableProfits.com and the author of the popular blog at http://www.PredictableProfits.com/blog.
ABOUT PREDICTABLE PROFITS: Predictable Profits is a leading small business marketing company and a division of Managed Marketing, LLC. The company specializes in finding overlooked marketing opportunities commonly found in most small-to-medium sized businesses and creating actionable marketing strategies for increasing a company’s profits. You can read more about Predictable Profits by visiting the company’s website at http://www.PredictableProfits.com.