Many of the Ecom brands I either work with or talk with believe the faulty belief that price is king.
They think they’re the next Walmart (even though many people prefer going to Target despite everything being more expensive), but they aren’t. In fact, trying to be the next Walmart is a sure fire way to either…
1. Go bankrupt lickity-split
2. Create an absolute monster of a business that devours your time, freedom, and peace of mind without even a hint of remorse
But they still make the “I can compete with Walmart mistake,” which is:
Competing on price.
Turns out, humans don’t care all that much about price. (For the sake of this email, we’re also gonna leave out the fact that low prices can work against you, and high prices work to your benefit because of the positioning and status they give your customers…)
To prove this fact of the human psyche, lemme give you a quick example where positioning or status aren’t even kinda involved:
My mom works at a pizza joint during the week. And whenever we get to talking about DoorDash, she always loses her shit about how stooooopid people are who order food from her store via DoorDash.
Well, the cost of the pizza itself is more expensive. Plus the extra taxes, service fees, delivery fees, driver’s tip, and limbs you gotta pay too.
And yet, people happily fork over their shekels to DoorDash instead of calling the pizza joint and ordering directly from them to get it much cheaper.
DoorDash is more convenient.
People don’t like making phone calls. And so they’d happily part with a few shekels to avoid talking on the phone with someone.
Plus, one of the best “hidden” features of DoorDash is that it doubles as a search engine for food (an area where Google is wildly behind the times).
So, you use DoorDash to search for food. Then, because of the convenience, you place your order through them, and it gets delivered an hour later cold and mushy. (Well, sometimes…)
Anywho, moral of the story?
There’s far better (and more profitable) options than competing on price. Brainstorm ways to get your business away from competing on price, and an avalanche of moolah will hit your bank account.
Need help with your emails (from someone who practices what he preaches and doesn’t compete on price)?