Are you a commodity, or are you perceived as a commodity?

A lot of businesses struggle because they market themselves as a commodity, they ARE a commodity, or they are perceived as a commodity.

Let’s talk about each one.

If you are always appealing to the lowest prices, you will be perceived as a commodity due to your marketing being a commodity.  In other words, if you are always chanting lowest or cheapest prices, you will attract the people who always want the lowest and cheapest prices.  So, step #1 is changing your marketing message to something that will attract other people.

If you ARE a commodity (which few people really are) then you need to get out of that business.  Now when I say get out of the business I do not necessarily mean you need to leave the business, but you need to be selling something different or change how you are selling what you are selling.  A lot of times you need to go the value added route to what you are selling.  So, if you are in insurance (something that is perceived) as a commodity, perhaps you need to negotiate a special discount for your customers at a lot of places.  So they can get better deals on cars, electronics, appliances, yard care, etc. etc.

Finally, if you are perceived as a commodity, which a lot of businesses are, then you need to educate why your customers should do business with you versus someone else.  And unless you can make a compelling case with facts, reason, and logic, then you are going to struggle.  In other words, just throwing in platitudes like, “We give good service!” or “We treat our customer rights” are not sufficient reasons.  Why?  Because ANY business can claim that, and the other response is , “Well, I would HOPE so!”

For example, say you have a convention center.  And you target organizations that need to hold a conference.  How about instead of bragging about how you have clean rooms (I would hope so!) you go and explain why your place of business, out of the 73 other convention centers and conference rooms in the XYZ area, is better.

Make a check list or a comparison chart of WHY you really are better.   Does that make sense?  And then you can PROVE it.  Offer some references or case studies, and then include a guarantee, and you’ll destroy your competition.  The absolute goal is to build your business so that prospects and customers would be stupid to go to anyone else.  You need to explain it to them, however.

-Matt

This entry was posted on Thursday, January 21st, 2010 at 12:34 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.