The call went great! I invested time in educating them, making sure they understood how things work, and where the pitfalls are.
For 3 days, I researched, looking into their business…
So when I finally sent the proposal, I was confident.
And then, 2 days later, “many thanks for the info Juan, everything looks great! We are collecting more proposals and let you know.”
It’s not the first time, unless you are the cheapest option, this is not an easy sell to pull off.
Ever since I started that business, it has always bothered me to get emails like this. I know it’s completely normal, but I’ve always wondered how…
How can I position our product as if it’s the only option out there?
I’ve bought 2 iPhones and 3 MacBooks in the last 13 years and I never questioned my decision. Didn’t even look at other options in the market.
The only question I had was, which model should I get?
So I wondered, how can I achieve the same in my business without the budget and brand recognition of Apple?
How do I stand out when my product has been commoditized?
Well, there are only 3 things you can do:
- Make leads believe you offer the cheapest price (or better yet, the most value) in the market.
- Make leads want to work with you no matter what (branding).
- Make leads feel you are their only option (messaging).
Let’s break it down.
Option 1 – Position Your Product As The Cheapest
There are 2 ways to be the cheapest:
A) you either have the most basic product for the lowest price possible or
B) offer the most value at the lowest price…
Both are very different.
So if you go for A and try to have the most basic product, then you better:
- Be validating an idea for a product
- Or have a large market and a low production cost
- Or are getting started and need to build your portfolio
Otherwise, I don’t recommend going with option 1A.
“There is no strategic advantage on being the 2nd cheapest”Russell Brunson
Now, if you don’t have one of the reasons above, and still chose to be the cheapest, I can tell you from experience that this is a tough position to be in.
It’s not strange that 1 of the top 5 reasons businesses fail is due to cash flow.
Pricing low without the volume means you’ll struggle to make enough money to do the investments your business needs to get to the next level.
With time, you’ll start to resent your business. Which may lead to closing it down or having it affect other areas of your life.
So as for option 1A, don’t do it unless you have one of the exceptions above.
Having the cheapest price will stop people from considering others but, is not the best way to make people feel you are the only solution in the market.
Unless you go with option 1B and find a way to increase the value of the product without increasing your cost. Being low priced doesn’t mean you need to be the cheapest.
Option 2 – Position Your Product By Making People Want To Work With You
Believe it or not, it’s possible to make a sale and still have the customer not interested in working with you.
For example, they needed to spend their budget.
But in any case, to make people want to work with you, you’ll need to build trust and goodwill, provide proof you can deliver results, and upgrade their status.
Let’s take a closer look.
Build trust and goodwill.
Be empathetic. Show your audience you not only care, but also understand their position and struggle.
Then help them solve their problem, and do it often and consistently. For example, creating free content like this post you are reading, offering free coaching, etc.
Help them grow and when they are ready, they’ll come back to you.
Go niche and provide proof you can deliver.
Focus on one customer and show them you are the expert on solving their problem, your language will be so relevant that it will automatically position you as the authority.
Add testimonials and case studies to paint a clearer picture of the problem your solve, for whom, how, and how life is afterward.
This will help them imagine how it is to work with you and what they can expect to achieve.
Upgrade their status.
People prefer to drink RedBull over a cheap generic one because it’s a premium brand and so, it upgrades the status of the drinker.
Same reason people buy Nike, Rolex, Mercedes, etc. This is as true for B2B as for B2C. If you are the underdog that nobody knows about, it’s likely you’ll lose business to the “cool/known” brand.
For your prospects, working with the “cool/known” brand elevates the status of their business in the eyes of their clients.
They don’t say it because they are not aware of it. So instead, they try to explain their decision by saying things like, company “X” has a track record, lower risk of failure, etc.
Option 2 will help you position your product as the only solution in the market for your customers.
But, combine Option 1B with Option 2 and 3 you’ll have a lifetime brand.
Option 3 – Position Your Product By Becoming The Only Option
“You need to name everything. Every process you have, get in the habit of turning it into a proprietary framework and give it a name.”Unknown
That’s what the guy in the video said.
No clue what that meant, until recently when I lost a sale I came to a huge realization.
I had positioned myself as a storytelling consultant. This should make it easy for people to understand how I can help them.
But what I realized is that it also makes it easy for them to compare me with everybody else who used the same label.
By trying to make it easy to understand, what I was doing was commoditizing my product. I actually took away the value I bring to the table.
That’s when I understood that I shouldn’t use other people’s labels, but rather create my own.
Apple doesn’t sell phones, they sell iPhones. Apple doesn’t sell laptops, they sell MacBooks. They don’t use Microsoft Excel, they use Numbers, which runs on the MacOS.
Name everything. Create your own categories, terminology, etc.
When you name all your processes and frameworks, you position yourself as the only one who offers the solution. By having your own terminology, prospects don’t have anything to compare you with.
RedBull could have positioned their drink within the carbonated drink category, but they didn’t. Instead, they named their own category.
Rather than describing the product in a general way, they focused on aligning the benefits with the desire of their target customers.
And so the premium energy drink category was created.
So back then, when RedBull came out, there was nobody to compare them with because they were the only ones in their category.
To position your product strategically, the goal is to align all 3 options. Do it and you’ll become the only option for your customers next time they go out looking for a solution.
Think about how you can increase the value of your product without changing the price or increasing your costs.
Think about how you can showcase your expertise to your target audience. Give them value consistently and you’ll create trust and goodwill.
Name everything, identify every process in your business, and give it a name. Then use your terminology everywhere! Build your own world like they do in the movies.
You want people to talk to you in your language.
Want to Position Your Business As The Only Solution?
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