If you don’t have a viable differentiator, then the default differentiator always comes down to price and that is a losers game.
You can only differentiate yourself by competing on price for a brief period of time if you want to stay in business, because there will always be someone new that comes along that will undercut your prices, or else there will be a big guy like WalMart that has the scale to undercut your prices. In Unless You’re WalMart, You Can’t Survive Competing On Price I go into more detail on the subject of competing on price.
Therefore if you want to stay in business, you are going to need to come up with a compelling differentiator. Something that you can hang your hat on and make a claim in the marketplace that will set you apart.
Today’s topic is all about that. What else you can do to differentiate product offerings that your company puts out into the marketplace?
You need a differentiator of some kind in order to stand out from the rest of the businesses you are competing against.
Some Ways To Differentiate Products
- The Materials and/or Workmanship
- A Specific Feature
- A Set of Features
- Your Guarantee
- Your Support Staff
- A Brand (for either the Product or Your Company or Both)
- Your Charitable Work
Pretty much anything in your business other than price that you want to highlight, that is also something that people care about.
What do you do or offer that is totally unique? Something that none of your competition is doing?
And don’t forget that it needs to be:
- Clear and understandable
- Something memorable
- Relevant to your audience
- And most importantly it must be Unique to your organization
It is critical though to your success, so you need to spend the time thinking about it and coming up with something compelling for your customers and prospective customers so they do business with you and your higher prices, as opposed to just choosing the low price leader.
These days there is a big Green movement, so you could incorporate that somehow, there is also a push toward Made in the USA, so if that fits your company, then maybe that is a differentiator that you can utilize to stand out from the crowd and your competition.
If you don’t have a specific differentiator in your business, then by default you are competing on price, so if you don’t yet have one, then you need to come up with it immediately.
How do you differentiate product in your business? What specifically makes yours better that the other guys? Why do customers choose to buy from you vs. the guy down the street?
Let me know in the comments below. I’d love to hear some good differentiators, and as always, I would appreciate a Like and a Tweet. Your business owner friends could use this advice too.
Have A Prosperous Day!