Marketing myth : Cheap prices are not always the right answer

Marketing Myth Busted: Cheap Prices ≠ Success! Here’s Why…

A product’s value entails much more than simply being the lowest.

So many businesses compete on price, aiming to be the cheapest, because reducing prices is much easier than proving a product’s worth. Simply drop the price and proclaim, “We’re the cheapest!” and we’re off. However, this is not a good long-term strategy.

Price vs Value Dilemma

Sustainable Growth and Long-term Success VS Cheap Prices

Actually proving the value of your product is the only true way to sustain a brand. Take a look at Apple, for example. As of January of this year, the average selling price (ASP) of iPhones in the US was $1,000 – $1,050. And the ASP of Androids?… $261

Despite this, Apple has the second highest market share of any manufacturer, with 19 percent, trailing only Samsung by 1%. Apple sells its products on the basis of their worth, as any short check at their website would demonstrate, and the statistics offer further proof. Global smartphone market data

Increase product value

Increase the value of your product using your words, rather than lowering it for a quick sale. Customers often associate value with more than just the price of a product or service. They consider factors such as quality, customer service, brand reputation, and overall experience. If a business primarily focuses on offering cheap prices without adequately addressing these other value factors, customers may perceive the offering as lacking in quality or overall value.

Conclusion and takeaways

While businesses might be tempted to rely solely on cheap prices as a way to attract customers, it is crucial to recognize that a strong value proposition goes beyond price alone. By identifying and highlighting the unique features, benefits, or experiences that set their business apart, they can create a compelling value proposition.

By focusing on delivering exceptional value and addressing customer needs and desires, businesses can build a competitive advantage and attract customers based on more than just price. Understanding the significance of a robust value proposition allows businesses to position themselves strategically and lay the groundwork for long-term success in the marketplace.

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