Fighting on price = lack of differentiation
I know, I know; the market has been tough over the last eighteen months.
Your prospects or ongoing clients are bashing you on the head about price. They say things like, “I can get this for X, and you’re selling it for Y”.
Managers everywhere are fighting off migraines, trying to figure out when things will get better or how to break out of the pricing game.
As Vincent Gardenia said in Moonstruck, “I’ll say only this…”
You have a differentiation problem, not a pricing problem. As soon as someone wonders why your prices are what they are, it’s certain they are comparing you to others in your sector. That’s a brand problem.
Unless you have significant and important differentiation from your competitors, where prospects and clients put you in a different sort of category in their mind, you’ll always have pricing problems.
Always.
The answer is brand positioning for differentiation. It means you are fundamentally different than the competition and can therefore substantiate an alternative pricing model.
One that can’t be compared to anyone else.