Comments on: Do You Compete On Price Or Value? http://www.vanseodesign.com/online-business/do-you-compete-on-price-or-value/ Helping you build search engine friendly websites Tue, 27 Jul 2010 18:07:45 -0600 http://wordpress.org/?v=2.9 hourly 1 By: Forrest http://www.vanseodesign.com/online-business/do-you-compete-on-price-or-value/comment-page-1/#comment-754 Forrest Thu, 31 May 2007 02:56:16 +0000 http://www.vanseodesign.com/blog/uncategorized/do-you-compete-on-price-or-value/#comment-754 Photographers tend to believe that if you start out cheap ( they call that being "a bottom feeder" ) no one will value your work, and you'll never be able to raise your prices. That seems to be the case in the corporate world; it's rare to get more than a 5% raise at the same job. I try to compete on quality. Some people see this a value, and others don't, think it's overpriced. My hope is there are enough fish in the sea for them to weed themselves out. I forget who said this first, but "price is only an issue in the absence of value." Photographers tend to believe that if you start out cheap ( they call that being “a bottom feeder” ) no one will value your work, and you’ll never be able to raise your prices. That seems to be the case in the corporate world; it’s rare to get more than a 5% raise at the same job.

I try to compete on quality. Some people see this a value, and others don’t, think it’s overpriced. My hope is there are enough fish in the sea for them to weed themselves out.

I forget who said this first, but “price is only an issue in the absence of value.”

]]> By: Steven Bradley http://www.vanseodesign.com/online-business/do-you-compete-on-price-or-value/comment-page-1/#comment-755 Steven Bradley Thu, 31 May 2007 02:07:34 +0000 http://www.vanseodesign.com/blog/uncategorized/do-you-compete-on-price-or-value/#comment-755 Thanks Dave. It doesn't surprise me that you had problems with some customers. I think people who buy solely on price and are always looking for the cheapest product also tend to be the people who complain the most. And unfortunately because your margins are so low you have don't have the resources to to handle the complaints. Forrest it's funny how people associate value with higher price even when it's not true. If some told you they charged $10/hr for consulting and someone else told you they charged $250/hr for the same consulting you'd probably assume the $250/hr consultant was better. One of the nice things about pricing based on value is you don't need as many customers since you should be making more profit per customer. That has the potential to save you on marketing costs too. I looked up the quote and most people aren't attributing a source. One cited Benjamin Franklin so maybe that's where it comes from. Thanks Dave. It doesn’t surprise me that you had problems with some customers. I think people who buy solely on price and are always looking for the cheapest product also tend to be the people who complain the most. And unfortunately because your margins are so low you have don’t have the resources to to handle the complaints.

Forrest it’s funny how people associate value with higher price even when it’s not true. If some told you they charged $10/hr for consulting and someone else told you they charged $250/hr for the same consulting you’d probably assume the $250/hr consultant was better.

One of the nice things about pricing based on value is you don’t need as many customers since you should be making more profit per customer. That has the potential to save you on marketing costs too.

I looked up the quote and most people aren’t attributing a source. One cited Benjamin Franklin so maybe that’s where it comes from.

]]> By: Dave Wagner http://www.vanseodesign.com/online-business/do-you-compete-on-price-or-value/comment-page-1/#comment-753 Dave Wagner Thu, 31 May 2007 00:23:06 +0000 http://www.vanseodesign.com/blog/uncategorized/do-you-compete-on-price-or-value/#comment-753 Great point. I remember working for a company that sold exclusively on eBay. We sold based on the price we could give the customers on products that were normally expensive. I notice that we always had problems with customer relations and your article helps me to realize why even if it won't do that company any good. We couldn't afford to spend hours on customer service because our price was so low. Great point. I remember working for a company that sold exclusively on eBay. We sold based on the price we could give the customers on products that were normally expensive. I notice that we always had problems with customer relations and your article helps me to realize why even if it won’t do that company any good. We couldn’t afford to spend hours on customer service because our price was so low.

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