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Add Value To Compete — Oct 7, 2020
Too many companies believe they can only compete on the basis of price. This leads to price cutting and unacceptable gross profit levels. Unless your company is selling a true commodity product or service, it is not always necessary to cut price to compete. If your company understands how to deliver outstanding customer service, it is already far ahead of most businesses. And over time many customers will become somewhat loyal based on that fact. This loyalty can allow some separation between your prices and that of your competition. And there are other ways of adding value to a sale. Use your ability to differentiate your product/service as a means of competing. This will mean that sales people will have to work harder and smarter. They won't be able to simply cut prices to get the deal. They will have to sell value and benefits. Making unnecessary price concessions is one of the leading ways that businesses drop gross profit to levels that simply aren't acceptable.
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