There’s a nasty industry secret no one wants to admit:
Premium brands are winning a lot of deals, but only by matching their lowest-priced competitors. This isn’t what being a premium brand is all about. It’s what being a commodity is about. What’s causing it?
Buyers want premium brands. They probably think of you as a premium brand. However, if you can’t articulate premium value, you’ll get paid like a commodity. When price is the only differentiator, the lowest price usually wins. Winning business by reducing prices has become quite common, and it can lead to an unsustainable death march for your business. So how do you fix it?
Identify the problem:
Ask yourself these questions
Is your marketing inwardly focused on your product?
Are you saying the same things your competitors say?
Is your value proposition really nothing more than a product description?
If you answered “yes” to any of these questions (or if customers are refusing to pay what your product is worth), your value proposition is woefully inadequate.
Market your premium value
Turn your marketing inside out. Start with your customers. Find their biggest challenges. Identify how your product uniquely solves these challenges. Make sure you solve them better than your competition. Now, articulate a value proposition that shows your customer what life would look like in both clinical and economic terms if those challenges were removed. Finally, bring it to life, so customers can experience it.
Remember, premium brands MUST market their premium value. When they don’t, they become commodities.