tag:blogger.com,1999:blog-7085845704400014349.post1828914009399068354..comments2023-04-06T02:51:25.174-07:00Comments on ToughLoveMarketing: Why You Should Never Lose on Price. And How to Make Me Right.Stuart Baumhttp://www.blogger.com/profile/13074466345130816565noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7085845704400014349.post-70386057348427301772010-12-05T07:05:11.773-08:002010-12-05T07:05:11.773-08:00Thanks for reading, Raissa and for the nice commen...Thanks for reading, Raissa and for the nice comment. <br /><br />I am not saying that price is not part of the conversation or even not at the top. When you buy a car, you look at the sticker price. How can you not? And if you have narrowed it down to two or three cars, and any would be fine, then a big disparity in price (sticker, rebate, financing, free options*) will push you to the lower cost one. So the goal of the car salesperson (and dealership and brand) is to find the customer's soft spot and make sure he/she realizes that only this one car meets it. <br /><br />Also, yes, some (many?) accounting firms are buying market share right now - especially from clients who see accounting firm offerings as commodities. The time is right for that, so it's a good strategy. And with the increasing reliance on look-alike technologies/systems and delivery via e-mail/portals, why would clients not make the move? They can get much the same services from every firm, they believe. And, sadly, often do. And they can learn this more easily than ever before. This is a huge shift from the target-rich, information-inaccessible environment firms were enjoying until recently.<br /><br />What I am saying (in the post) is that fighting a price war is a losing- and incorrect -strategy. And the spoils of a price war will not go to the victor. Not even in the short term since they will get a disproportionate majority of the high-maintenance, low value clients.<br /><br />But you hit the nail on the head. Low price AND high value. When they need to choose one, however, which will they choose? Most will choose value. Those that don't have chosen wrong and are, I believe, in the vast minority. And when they move for price, they are really moving for a perception of lack of value. <br /><br />You would not buy a cheaper briefcase only because it's cheaper. (There is one at the dollar store.) If you could not afford any more, then you are stuck. If you can afford more, but decide not to, then you have not been convinced of the value the extra cost will bring. Which is what I am saying.<br /><br />Yes, it's a knife fight out there for accounting firms. But value is the gun in this (politically incorrect) analogy. And never bring a knife to a gun fight. <br /><br />*free options feels like a pricing strategy, but offered right, it's a value one. Find out what else they need and offer the first stage for free? ... Just an idea.Stuart Baumhttps://www.blogger.com/profile/13074466345130816565noreply@blogger.comtag:blogger.com,1999:blog-7085845704400014349.post-50932968262528582832010-12-01T08:29:33.801-08:002010-12-01T08:29:33.801-08:00I like your no-BS approach, Stuart, and always hav...I like your no-BS approach, Stuart, and always have. In today's newly cutthroat environment though, how often is price not the top of the conversation? Even when clients regret it, they still believe they can find the bargain firm that will be low price, high value. Especially with Big 4 creating unrealistic expectations on the price bell curve. Your thoughts?Anonymoushttps://www.blogger.com/profile/16338063000826672231noreply@blogger.comtag:blogger.com,1999:blog-7085845704400014349.post-33780056058587679342010-08-15T12:53:57.174-07:002010-08-15T12:53:57.174-07:00Thanks for tweeting this. I couldn't remember...Thanks for tweeting this. I couldn't remember where I had read about "Small Giants" or even the name of the book, but after landing on your blog, it all came back to me.Candacehttps://www.blogger.com/profile/11490114576454814927noreply@blogger.com