Marketing – Is cheaper better?

Over the years I can’t tell you how many times a prospective client called and asked for a quote and then advised me that a competitor offered the same service at a price lower than mine.  How do you respond to that?  Do you lower your price to match or beat the competitor?  Many companies do, they even include this into their marketing scheme, advertising that if you can find pricing lower than theirs and submit proof that they will beat or match the price.

I don’t believe that just because something costs less that it is better, and in my experience the opposite is often true.  As a company we know what our services and products are worth and we price them at what we feel is a competitive and fair price.  We know that we will not always be the cheapest, and that’s ok because our marketing is not wrapped around price, as many companies are.  For me it is a big red flag when a company talks about price, price, price, but doesn’t discuss the attributes of the product or service.  Price is not everything.   My response to those potential clients that tell me they found it cheaper is to ask them why they are calling us then.   I have often advised these potential clients that just because it costs less doesn’t mean that it is a superior service and that you get what you pay for.  Other times when I couldn’t sway them and they kept throwing the competitions pricing in my face I have often told them that if price is what is important to them that maybe it would be better for them to use the competitors.  This has stopped people in their tracks on many occasions, because it is the last thing they were expecting to hear.

As a business you cannot kick yourself every time you see that a competitor has a lower price.  Don’t get me wrong, you certainly want to be competitive, but you also don’t want to focus just on price, you want to concentrate on quality as well and you want to be sure that this is being relayed to the client.  Cheaper is not always better, sometimes it is better to charge more but have a more quality product or service.