Photo: Shutterstock.

All of your clients (and prospective clients) have something in common. Something that you need to be aware of, if you want to market your business successfully.

It’s simply this: They notice things. Even the things they never mention to you.

For example.

• They notice if you treat them like stars in order to get their custom, then treat them like numbers once you have it.
• They notice if you promise their project will be delivered on schedule, but you’re late.
• They notice if you’re more focused on what’s in it for you, than what’s best for them.

Thankfully it works both ways, because they also notice.

• When you treat them like stars in order to get their custom, then treat them like superstars once you have their custom.
• When you promise their project will be delivered on schedule, then deliver their project (and your promise) on schedule.
• When you’re more focused on what’s best for them, than what’s in it for you.

Here’s why this is massively important to your business

Not every client complains when they’re receiving a poor service. The vast majority say nothing. However, they’re highly likely to take their custom to a competitor.

Not every client says “thank you” when you’re delivering an outstanding service. However, they’re highly likely to remain your client and to recommend you to everyone.

The bottom line: People notice what you do. So do something worth noticing. And look for opportunities to do it every day.

Photo: Shutterstock.

Without knowing it, many business owners are engaged in a dangerous race to the bottom. In today’s post, I explain why this is almost always a terrible strategy for business owners. I also share some proven advice on how to avoid it happening to you.

Let’s go.

Race to the bottom: What does it mean?

In marketing, we tend to use the term to refer to making sales or winning new clients, based on being the cheapest option. This is most common among commodity businesses. The ‘winner’ of the race to the bottom is the business that’s the cheapest / lowest priced at that time.

Some big businesses use their financial muscle to work successfully with low prices (or fees). Their buying power means that they have deals available to them, which smaller businesses simply can’t access. This allows larger businesses to compete in your marketplace, profitably, with extremely low prices.

However, small and medium-sized business owners tend to just lower their prices, as a way to make more sales or attract more clients. They then find their competitors do the same.

And the race to the bottom begins.

The prize?

The winner gets, wait for it… the privilege of building a business on a dangerous foundation of customers, who will leave them the moment a cheaper provider comes along.

It’s a high risk, low return strategy. It requires you to constantly look for ways to lower your overhead, cut corners and speed things up. All this, in an effort to attract the least loyal profile of customers in the world: Those who switch from provider to provider, looking for the lowest prices.

Why is such a high risk, low return strategy so popular with small business owners?

Simple.

They see it as an easy way to attract more customers or make more sales. However, a look at the medium and longer term picture shows why this usually goes horribly wrong.

Here’s what I’ve seen small business owners do over and over again.

Bob’s race to the bottom

Let’s take Bob the business owner as an example.

• Bob decides to lower his prices by 10%. He soon notices a slightly better sales conversion rate.
• So, he lowers prices by another 5%. And it improves sales even more.
• Some of Bob’s competitors decide to do the same.
• The race to the bottom is now on!
• Bob then needs to lower his prices by another (whatever)%, because his competitors are charging the same low prices as him. Bob’s prices are now rock bottom or very close to rock bottom.
• Bob continues to make some sales, BUT with very, very little profit.
• At this point, it’s a case of waiting for one of the following common scenarios.
• Scenario one: A well-funded competitor decides to sell at a loss for 6 / 12 months (to gain market share), Bob then has to try and survive on fewer and fewer low-profit sales.
• Scenario two: Bob’s overhead increases unexpectedly and he is forced to start increasing his prices, all those price sensitive customers he raced to win will now look for the NEW, cheapest provider.

It’s easy to attract customers by reducing your prices. However, it’s unsustainable. So, if this is something you are considering, please think again my friend. Consider the medium and longer-term consequences of winning the race to the bottom.

Relax

I’ve got you covered. Here’s a massively better approach. It’s proven to work and I explain it in detail. (You’re very welcome).

Photo: Shutterstock.

It’s really important that your prospective clients (or customers) hire you or buy from you. And not for the most obvious reason.

Allow me to explain.

If your prospective clients go to one of your competitors, you have no way of knowing what kind of lousy service they could receive.

Anything could happen to them!

On the other hand, you know for certain what will happen if a prospective client hires you.

• You know that you will look after them.
• You know they will receive outstanding value for money.
• You know that you will care, really care, about them and the service they receive.
• You know that you will go the extra mile for them.

In short, if they choose you, you know they will be delighted.

A powerful marketing mindset

I have clients today, who first hired me over 20 years ago. This marketing mindset is what attracted them, and my total commitment to their success is what keeps them coming back.

I recommend you do the same.

You see, I truly believe you have a professional obligation to ensure that your prospective clients hire you or buy from you. Why? Because it’s the only way you can guarantee for certain that they will not be disappointed.

Now consider this:

• How do you think your marketing message will improve, when it’s based exclusively on what’s best for them, rather than self-promotion?
• And how do you think your results will improve, when your marketplace knows you’re looking out for their best interests?

You care passionately about your clients. You take huge pride in the quality of your work and the happiness of your clients. So let the marketplace know. Show them that their total satisfaction is your goal. That it’s what drives you. What motivates you to continuously improve. Make that message the cornerstone of your marketing.

Because it’s exactly what they need to hear… and you know that what you’re saying is the truth.