Compete on the benefits side of the value equation – not on the price side.
Ever stay at the Ritz Carlton? My husband and I do, once a month. Why? Because when we have our one night away from our wonderful children we want to ensure that we stay someplace where we feel special.

The Ritz hits the mark. When we drive up to the entrance the valet opens our car doors and greets us by name. When we walk through the lobby the receptionist does the same – every time and without fail. (Good start.) The concierge books us in giving us our complimentary upgrade Then she reminds us to take advantage of our $85 “restaurant voucher” (great way for them to get us to dine at their restaurants and spend more money). Jim, the bellman, always brings our bags up to the room and during our stroll, he points out what’s new in the gift shops, the specials on the restaurant menu and highlights something wonderful about the spa (nice up-sell.). Each time he welcomes us into our room, he reminds us of all the features including an electronic dash board that turns the lights on/off, controls the climate, opens and closses the drapes, etc.  When we were there last, he handed a shoe bag to my husband to use and offered to return a shiny pair back to him in the morning.  My husband took him up on his offer and asked if he could have his shoes back in the next 15 minutes and Jim said “absolutely” without a moment of thought.  Now that is service. Even as a frequent visitor, I have no recollection of how much they charge for the room (yes, I just sign the bill). The point: the value proposition (value = cost / benefits) is always spot-on. I tell everyone about my experience. And, we always return. (costs them nothing – those rooms are sitting empty – but this thrills us.).

What is the key motivator for your clients?
Do you fulfill their expectations every single time?

When reflecting on your customers’ experience consider this. Have you ever seen someone with a Harley-Davidson logo tattooed onto his/her body? Did you even wonder what makes the Harley brand so powerful that someone would actually have it inked onto their body…. permanently!? Would your clients tattoo your logo onto their body?  Would you?

While price is “always” a factor in a sales discussion, the Ritz Carlton and Harley-Davidson are amongst those elite brands that have pushed price back to a secondary or even tertiary role in their overall dialogue.

Consider going one step beyond the Ritz and Harly Davidson. What would you do if price were completely eliminated from your sales discussion? What benefits would you compete on? This is extreme thinking, I know. But many times extreme thinking enables incremental movement.

To make this move, you’re going to need to take a hard look at your brand. There are many definitions for the term “brand.” I choose to define “brand” very simply as a unique bundle of promises (BOP) that a company makes to its stakeholders. What is your unique BOP? Is it powerful enough to eliminate price from the discussion? It may not be.

I shop business center providers – often. Every single website features fully furnished offices, flexible terms, staff and equipment, high-speed Internet access – all ready today, on-demand. Do these features comprise your BOP? If yes, you’re in trouble. You risk falling into “price death spiral” discussion. Why? Because these promises are features (not even benfits) that every single business center provider offers. They are features of the industry. Not your unique promises.  If you decide to take on the challenge of developing your BOP in an effort to shift price from a primary to a secondary role in your discussion you’ll need to take a few simple steps ….

Let’s chew on this for a moment…I would love to hear from you.. .Coming up next, I’ll share my tips for building your BOP and shifting out of the Price Death Spiral.