Nobody can sustain a low price image forever. Competing on price will only provide a short-term volume bump at the risk of destroying the value of your long-term potential.
I’ve talked about low prices for a long-time. Relying on low pricing to make a sale often causes the customer to not accept anything but the lowest price from you. They tend to see you only as a low-price provider. When this happens, you lose your opportunity to convey confidence. Remember, features are sold at cost; benefits are sold at a profit.
Think for a moment about Wal-Mart. If I need something and I know exactly what it is, I’ll go to Wal-Mart because I don’t need any questions answered or any confidence in what I’m buying. They will have a low price and that’s all I’m looking for. On the flip-side, if I have a pain, I’ll visit my doctor. He will supply the confidence I need to help solve my problem, and, regardless of the price, that’s what I’m looking for.
