Reason 3. Marketing by Price
Trying to sell carpet cleaning based on cheap price is quite simple a ‘race to the bottom’. The problem is that there can only be ONE lowest price. If you’ve got deep pockets and don’t care if you lose money short term you can put your competitors out of business…until someone cheaper comes along. (and they will!). There’s no value in a marketing message that says “we’re second cheapest”
If you can’t be the cheapest, why not build your business to be the most expensive?
Everyone is trying to be cheaper but hardly anyone is trying to charge higher prices by giving greater value. At least you’ll have a message to promote.
But once you know who you’re trying to reach and what message they will respond to, it’s so much easier.