We're better because we're cheaper

August 23rd, 2010

That has to be the laziest marketing message I’ve heard.

Who wants to be cheaper?

Who wants to attract customers that want cheaper?

Who wants to motivate staff that we’re doing this to be cheaper?

It’s a losing battle… please do not ever ever say your better because you’re cheaper, say your better because you deliver magnitudes times more value, robust support, innovative technology, improving your customers life, increasing their status… the list goes on but you get the point.

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9 Responses to “We're better because we're cheaper”

  1. Chris Says:

    It depends on the product, price is a huge factor in the decision for a lot of people. Being cheaper means your customer can have more money in the pocket to do other things. If I’m selling you an apple for $1 and Bob is selling you one for $2, which one are you going to buy? Thousands of businesses have built on, and have toppled others, by delivering the same thing for less money.

    Some local examples. Look at Pinnacle Life – they’re whole positioning is doing the same thing for 20% less. Look at the Warehouse, bargain basement prices. People love saving money.

    You ask who wants to attract customers that want cheaper? Well it might be the business that is on its knees and needs to get customers through the door. It’s all very well to say it’s a lazy marketing message but it’s called competition, and at the end of the day it’s ultimately how all us consumers get a better deal.

  2. ophil Says:

    Ben this connects directly to my own marketing / strategy manifesto BUT my customer centric blood reminds me of the exception that proves the rule_ unless CHEAPEST is the most important attribute for your target market… its another discussion of course to debate the sustainability of that choice of target customer…

    A quick answer to your question about who wants to motivate staff that were doing this to be cheaper WALMART

    Thanks for making me challenge oen of my own assumptions (even when I agree with you entirely!) #iheartbwagy

  3. Ben Young Says:

    @Chris You’re missing the point, cheaper can be a feature but it shouldn’t be the core value proposition pushed out to the market.

    @OPhil Ha! Glad you enjoyed it.

  4. Chris Says:

    I disagree, depending on the product/industry it most certainly can be the core value proposition. Think of grudge purposes: getting a WOF, tyres for your car, insurance and the like. Or what about big item purchases, plasma TV, latest Apple Mac. I just bought a Mac Pro from JB HIBI as opposed to Magnum Mac.. why, because it was $100 less. That’s it. Sometimes undercutting is the most powerful tool to a light-footed entrepreneur going up against overhead-laden stalwarts. Especially in this economy, I wouldn’t discount it for a second – if you know what I mean.

  5. Ben Young Says:

    @Chris Not saying it can’t be, saying it shouldn’t be. Ironically enough your example of a Mac highlights my point, you could buy functional equivalent of a Mac at a hugely reduced price, yet we pay for the other values that Mac gives us – most of which are intangible.

  6. Chris Says:

    You say it shouldn’t be, but why? The Mac argument doesn’t make sense.. the Mac wasn’t for me, I needed to buy one – I went for cost. You’ve seen all the ads on TV for Mitre 10 Mega and Bunnings – what’s their main selling point? Being the cheapest. People are driven by price, it’s human nature, inescapable and foolish to ignore.

  7. Ben Young Says:

    @Chris We’ll just have to agree to disagree, your speaking from the view of a consumer (whom has received a message) – mine is from the point of view of those creating the message.

    Side note: Hardware places offer guarantees on items that they have locked distribution for, they can offer that as the competition don’t stock the same brands.

  8. Nathaniel Flick Says:

    The old adage “you get what you pay for” applies here. It’s no excuse that you have no money to not do things right. If you pay little for the important things, the important things fall short and the result is the same – a cheap result at best, failure at worst.

    As for the Mac example, the best value I’ve ever had is buying a Mac for one simple reason – I don’t need to have an accompanying IT support person to run one! Imagine the time and money I save by spending that extra $1000 once rather than per week!

    My .02. ๐Ÿ™‚

  9. Ezra Says:

    @Chris: But Bob is selling beautiful juicy apples with lots of good flavor and your $1 apples are mealy and not very good quality, I’ll take the $2 Bob apple please.

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