Why do people drink carbonated water mixed with corn syrup…because its called Coca-Cola. People don’t buy the product they buy the brand. A leather bag from Walmart and from Channel may cost about the same amount to make but people are willing to spend 100x more for the Channel one. The reason is that Walmart’s has become associated with the lowest price and therefore cheap. Where as, Channel associates its brand with celebrity and status. So the person who buys the Channel bag isn’t trying to something to hold their keys they are buying into status.
The biggest mistake businesses make that sell a service is that they focus on a product or service offering rather than the brand. If you sell web design, realize there are millions of people offering web site for next to nothing. In this global economy, when you offer a product you are competing with the world on their terms and the decision maker for clients is price. There is no way any company in North America can can compete on these terms. Even India, the traditional choice for outsourcing work, is expensive compared to countries in Africa or Asian where you can hire a developer for a couple of hundred for a month’s worth of work. So to compete don’t sell a product sell a brand.
When I pitch new clients, I am not selling SEO services I’m selling my brand. When they order my service they are really ordering me. My brand is much more valuable than the service that I sell. With brand comes my years of experience, knowledge, books I wrote, and the speaking engagements that I’ve done. They can trust the brand and the decisions I make for their businesses. Price is never an issue because there is no other company in the world that can offer what I can…which is me.
So stop selling products and start selling brands and you’ll find your business will prosper.