Would you buy your wine from Dan Murphy’s because they take “pride” in “offering the lowest liquor price guarantee?” Your new plasma TV from Retravision Online because they “guarantee to beat any advertised competitor price?” When your nephew or niece’s birthday arrives, will you purchase your present from Toys R Us because they promise their “prices can’t be beat”, and that they’ll “match any advertised price?” These retailers wouldn’t lie to you… or would they?
According to the University of East Anglia, lowest-price guarantees can actually work against consumers, potentially pushing prices up and discouraging them from shopping around. So, in fact, lowest or best price guarantees are not good indicators that a store is cheaper than its competition. Why, then, do we keep returning to and buying from these businesses? Well it’s pretty simple – you’re a marketing message sucker.
On average, five times as many people read the headline as read the small print. We as consumers don’t bother reading that: “In some cases there are prices which Retravision Online cannot match,” “The competitor store must be within 10 kilometres of Dan Murphy’s,” or that the Toys ‘R Us guarantee “Excludes competitor’s category or storewide discounts, conditional sales, package deals, discontinued lines, loyalty or third party offers, fire or liquidation sales, clearance/warehouse outlets.”
Marketing messages should excite customers with what you can do for them.
Our eyes and wallets are dazzled by lowest price guaranteed slogans. So what does this mean for the average business owner? You need to think about what you are selling to your customers. Retravision, Dan Murphy’s, and Toys ‘R Us aren’t telling consumers they’ve been in production for however many years, who they’re owned by, where they source their materials from, or where they hope their business will take them. Why? Because people just don’t care.
Most consumers have one thing they care about more than anything else. You need to work out what it is and sell it to them – whether it’s getting the product to them quicker, being cheaper than your competitors, or by ensuring that the quality is the best on the market. So, if your business has been running since 1969, don’t give them a history lesson from that year – it’s useless and frankly, it’s boring! Instead, mention that with over 40 years of experience under your belt they won’t be paying for you to learn on the job.
If your production takes place locally with locally sourced products, don’t just focus on the fact that this supports the community. Tell your customers because it’s right next door, it’s fresher and faster! In the event there is a problem, you’ll be able to solve it a hell of lot quicker because you have the part right on your shelf – they don’t have to wait weeks for shipping. And, in years to come when a part needs replacing – you’ll be able to do it for them – they won’t have to scour eBay for a part that hasn’t been manufactured in years.
To ensure your business can compete– you need marketing messages that excite customers with what you can do for them. Instead of dropping your pants on prices that might see a short term spike in sales, opt for something that will provide you with long term growth. Find the most compelling features of your business, and sell them.