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Low Price Leaders Thrive

Thursday, June 25, 2009

Are you a low price leader?

Leaders and losers

To thrive in a price driven market you need to to be a low price LEADER. Some auto repair shops know they're leaders. Some think they're leaders. Many don't know they're losers. Consumers know the difference and quickly find the leader. What are you?

Thinking about repair shop website marketing strategy

The low price LEADER offers the lowest price for quality products resulting in high consumer value. Think Walmart. In contrast the low price LOSER provides low pricing for low quality products. Think poor value. Consumers notice the difference and the low price LEADER becomes the winner.

What's your strategy?

Being the low price leader is a business strategy that uses technical or operational advantages to dominate in competitive pricing markets. Think efficiency gains. Think high value. Think happy customers. Think growth and profitability. The low price leader competes on value not price.

The low price loser strategy is to lower quality to compete on price. Think low-skilled workers. Think inferior parts. Think low value. Think unhappy customers. Think struggling business. The key difference is that the low price loser tries to compete on price alone. Beware of this race to the bottom. Cutting quality to enable price matching is a sure road to business failure.

Don't undervalue yourself

Auto repair shop managers typically undervalue the product they sell. They get obsessed with price matching and don't promote a true apples-to-apples price comparison. Extended operating hours, quickness of service, quality of parts and workmanship, convenience, quality of facility, etcetera all combine to make up the TRUE value of the service you provide. The mistake is not communicating the VALUE of what you sell.

Show and tell

You need to educate your customers. Tell them about the TRUE value of what you sell. Show them what makes your product a better value. If you don't, your forcing yourself to promote your business on price alone. If your not educating, congratulations, your a low price loser.

How to be the low price LEADER

Define and state the true value of your service. Use your auto repair shop website to educate your customers. Become a low price LEADER in the eyes of consumers. Charge what your services are truly worth.

Cheers,
Doug

(P.S. Seth Godin, marketing guru, says in his book, Purple Cow: Transform Your Business by Being Remarkable, that the only way to win is to get people to talk about you. Once people see you as a low price leader encourage them to talk about you. Check out my blog post about social networking for auto shop marketing and getting people to rave about you!)

About the author:

Doug Fentiman

Doug Fentiman is an authority on auto repair shop website marketing and founder of Robert Maxim International. Robert Maxim provides an inexpensive, easy to use website based marketing system that is designed from the ground up for auto service and repair shops. We help shop owners build profitable businesses from lasting relationships with quality customers.

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About The Author

Doug Fentiman is an auto repair shop website marketing specialist and owner of RobMax Web Solutions. He provides an inexpensive, easy to use, website based marketing system that is designed from the ground up for auto repair shops. Doug helps shop owners build profitable businesses by attracting quality customers.

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