Are You The Best, or The Cheapest? (You Can't Be Both)

The "Price Match Guarantee" and " Lowest Price Guarantee" seem to be an essential part of many large retailers at the moment. Savvy consumers are encouraged to shop around and get the best price on whatever it is they are buying. But have you considered the trade-off you are buying into?

There are a few sayings that continue to prove themselves correct time and time again - "You get what you pay for" , and: "If you pay peanuts, you get monkeys". If what you offer is better quality than your competitor, don't be afraid to charge more. If the value to your consumer of your product is much greater than the actual cost to produce, dont be afraid to have a larger profit margin. The psychology behind that is, as the price drops so does the value. Your product or service may be top notch, but if you price it too cheap, it will be over-looked by many as being inferior to what they are looking for. Cheap is nasty, cheap is poor quality.

When you hire staff to help run your business, you will find your wages become your largest expense, but if done correctly, your staff will be your greatest asset. Smart companies will offer higher wages than their competiors, to attract better quality staff. People who are highly proficient in their expertise know that they can get a job that pays better than the rest, so why would they settle for less?

If your business is about quality, you will want the best people, you will want to produce the best quality product or service, and so that goal automatically eliminates the option to be the cheapest. If you offer the best, your reputation for quality will attract the customer that will pay your prices. If your product or service is what people want, they will pay what you charge. Your business sucess will be based on your larger profit margins, but at lower volumes. Your target market will be more of a niche market than the general market.

If your business is about being cheap, you will have to prepare yourself for what that costs. You will not be able to offer the best quality products or services, you will not have the best staff, so don't expect quality to be part of your sales pitch. Your business success will be based on higher-volume turnover with smaller profit margins, and in order to keep the prices low, you will need to keep your overheads as low as possible.

At Evertrue Business Solutions, we help new and prospective entrepreneurs (who don't really have the head for business) to turn their ideas into a successful business. You ideas and energy + Our experiance and dedication = Your small business dreams will come true.