The real issue is value, not price.
Robert Lindgren, Business person
Customers are demanding aesthetically pleasing, just in time, high quality, value priced products. Examples can be found all over. Proctor & Gamble in 1992 killed its marginal brands, cut product lines, and shaved product prices thus saving consumers about $2 billion by lowering its overall prices by 6%. This however was not done without the pain of radically transforming the organization and dramatic cost cutting.
To stay competitive, companies are shaving costs, killing marginal product brands, cutting product lines, reengineering processes, outsourcing non-core processes, projectizing work, and reducing suppliers. Products and services that routinely increased in price each year are now stabilizing as competitive pressures and customer resistance cap price increases.
This is also occurring in services. Professional firms, such as law, engineering, architecture, and medical offices, were once immune to marketplace pressures. No more! Consumers can shop for the best prices and services. Since service quality and price are uniformly high, what differentiates your services from others? It’s all about adding value!
Life Lesson Earned: So, what value do you add? Start connecting the dots in your life. Do what works. Drop what doesn’t. Focus on adding value. Pushing your boundaries and try to see what’s coming up the horizon.