don’t compete on price when you compete
on price it’s a race to the bottom
because it’s always somebody who’s going
to undercut your prices to scoop the
customer up customers are not loyal to
you when you compete on price and it’s
really hard to build a long-term
sustainable advantage in business when
it’s only on price I got a question from
one of my youtube viewers love you guys
Colin wrote in on one of my videos I
mentioned competing the prices recipe
for failure and he’s wondering why is
that he said he rents a house in
Pretoria it’s a it’s a rental property
for him and he has a resistance on the
price and every time he drops the price
he gets more business and when he
increases the price people don’t want to
go with him anymore here’s the thing
call and this is a challenge for every
entrepreneur because we typically
undercut our prices you have to find
something else to make your property
stand out beyond how much is it price is
always a factor in any buying decision
but you want to decrease the importance
of it for your customers and it comes
from increasing the value of what you’re
offering it’s not just a location for
you think about any hotel chain you’ve
got the budget motels the this you know
slimy places where you might not
actually want to spend the night in
their bed but it’s super cheap all the
way up to the Ritz Carlton’s in the four
seasons of the world what’s the
difference you can have two hotels
across the street from each other one
with a massively different price and the
other it’s because the hotel with the
higher price has a lot more service
they’re offering something different
something that people will pay for that
the other guys aren’t offering it
attracts a better customer to you it’s
attracting people who value service who
will treat your place better who will
refer more clients on to you you don’t
want the guys we’re just gonna pass the
low budget bottom-of-the-barrel clients
on to you you want the guys who can pass
on real business to you so you have to
now think about a way to make your place
stand out so that the only thing you’re
competing on is not just price you
should be able to charge that extra $50
$100 or whatever it is because you’re
offering so much more value than your
competition and it doesn’t have to be
things that cost you a lot of money it’s
more perceived value so start thinking
about everything you can do to make the
experience better for your customers so
there are some basic things like you
provide free Wi-Fi free parking right
just look at the hotel industry but what
else could you do imagine the life of
somebody who’s coming to Pretoria okay
they may not have ever been there look
at a typical persona of the of your
average customer coming to you or you
may be more your ideal customers coming
to you what are their challenges people
pay for seasons because of the
convenience because they’re helping make
those people’s lives easier so that
people like paying hundreds and hundreds
of dollars every night for one hotel
room so what else can you add to the
experience of your customer when they’re
coming to your place what are their
other problems lodging is a problem
you’ve solved it but what else do they
have to do are they tourists do they
need to know about Pretoria would it be
helpful to have somebody give them a
tour what’ll help be helpful to have
some information in their room about
great places to eat great things to see
any holidays that are coming up any
important festivals or events that are
coming up how can you up the value that
you’re providing so that if you do
increase your price by 50 bucks or 100
bucks or whatever it is you’re not going
to get that massive drop in business
this is a challenge for every
entrepreneur because we typically
undercut our prices and I know it’s hard
and I know it comes from a belief that
that we’re not good enough that we don’t
deserve to have that money where you
should be you should be the expert at
what you do and you should care more
than anybody else because it’s your
business so if you really care about
your customers find other ways to add
value to the experience with them so you
can justify charging a higher price when
that happens you’ll have a lot more
says you can apply to every property you
have every business that you run and
it’ll make all the difference in the
world
believe those are you watching you like
the video please get our thumbs up below
and please leave a comment underneath I
want to know what you’re thinking the
comments really make my day every day so
I love seeing them come in thank you so
much and I’ll see you guys soon
you
on price it’s a race to the bottom
because it’s always somebody who’s going
to undercut your prices to scoop the
customer up customers are not loyal to
you when you compete on price and it’s
really hard to build a long-term
sustainable advantage in business when
it’s only on price I got a question from
one of my youtube viewers love you guys
Colin wrote in on one of my videos I
mentioned competing the prices recipe
for failure and he’s wondering why is
that he said he rents a house in
Pretoria it’s a it’s a rental property
for him and he has a resistance on the
price and every time he drops the price
he gets more business and when he
increases the price people don’t want to
go with him anymore here’s the thing
call and this is a challenge for every
entrepreneur because we typically
undercut our prices you have to find
something else to make your property
stand out beyond how much is it price is
always a factor in any buying decision
but you want to decrease the importance
of it for your customers and it comes
from increasing the value of what you’re
offering it’s not just a location for
you think about any hotel chain you’ve
got the budget motels the this you know
slimy places where you might not
actually want to spend the night in
their bed but it’s super cheap all the
way up to the Ritz Carlton’s in the four
seasons of the world what’s the
difference you can have two hotels
across the street from each other one
with a massively different price and the
other it’s because the hotel with the
higher price has a lot more service
they’re offering something different
something that people will pay for that
the other guys aren’t offering it
attracts a better customer to you it’s
attracting people who value service who
will treat your place better who will
refer more clients on to you you don’t
want the guys we’re just gonna pass the
low budget bottom-of-the-barrel clients
on to you you want the guys who can pass
on real business to you so you have to
now think about a way to make your place
stand out so that the only thing you’re
competing on is not just price you
should be able to charge that extra $50
$100 or whatever it is because you’re
offering so much more value than your
competition and it doesn’t have to be
things that cost you a lot of money it’s
more perceived value so start thinking
about everything you can do to make the
experience better for your customers so
there are some basic things like you
provide free Wi-Fi free parking right
just look at the hotel industry but what
else could you do imagine the life of
somebody who’s coming to Pretoria okay
they may not have ever been there look
at a typical persona of the of your
average customer coming to you or you
may be more your ideal customers coming
to you what are their challenges people
pay for seasons because of the
convenience because they’re helping make
those people’s lives easier so that
people like paying hundreds and hundreds
of dollars every night for one hotel
room so what else can you add to the
experience of your customer when they’re
coming to your place what are their
other problems lodging is a problem
you’ve solved it but what else do they
have to do are they tourists do they
need to know about Pretoria would it be
helpful to have somebody give them a
tour what’ll help be helpful to have
some information in their room about
great places to eat great things to see
any holidays that are coming up any
important festivals or events that are
coming up how can you up the value that
you’re providing so that if you do
increase your price by 50 bucks or 100
bucks or whatever it is you’re not going
to get that massive drop in business
this is a challenge for every
entrepreneur because we typically
undercut our prices and I know it’s hard
and I know it comes from a belief that
that we’re not good enough that we don’t
deserve to have that money where you
should be you should be the expert at
what you do and you should care more
than anybody else because it’s your
business so if you really care about
your customers find other ways to add
value to the experience with them so you
can justify charging a higher price when
that happens you’ll have a lot more
says you can apply to every property you
have every business that you run and
it’ll make all the difference in the
world
believe those are you watching you like
the video please get our thumbs up below
and please leave a comment underneath I
want to know what you’re thinking the
comments really make my day every day so
I love seeing them come in thank you so
much and I’ll see you guys soon
you
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