Is Your Business Positioned for Success or Failure?

Updated: September 20, 2010

Ask yourself these questions…

  1. In simplistic terms are you a high, mid or low quality provider?
  2. Do you price at the high, mid or low end of the market?

With regards to the first question, clients more often than not answer that their offering is of a high quality. I have a theory on this in that often businesses are started by individuals with a real passion for a product or service and that this passion is manifested as a high quality output. Unfortunately, the answer to the second question is often mid or low end pricing and this is prevalent within price sensitive markets where a lot of buyer power exists and this is where a potentially serious problem lies…

From my perspective, there is no right or wrong answer to the first question. It may give you a great feeling as a business owner if, for example you produce a disposable razor where the blade is of such high quality that it remains sharp for 200 shaves. Within the disposable market however, such a blade is an intangible benefit as the razor will be thrown out after two or three uses anyway. The consumer will not pay for benefits or enhancements that they cannot see, touch, taste, hear or smell.

The point that I'm trying to make here is that the only correct answer to the second question is the one that corresponds to the first (for example high quality = high price, mid quality = mid price, low quality = low price).

In the example of the razor manufacturer an option could be to consider moving away from the disposable market altogether and into the one where the high quality blade becomes a tangible benefit for prospective consumers of the product. Alternatively, realigning the manufacturing processes to produce a high volume / lower quality blade (thus reducing cost) and remaining within the existing market may be a strategy worthy of consideration. In other words, do yourself a favour and "Don't try to sell what you want to produce, sell what your customers want to buy".

Thus far I have focused on high end positioning however as a mid or low quality producer, positioning is equally important…

If for example you are a manufacturer of low quality / high volume household furniture and selling it through high value resellers at a premium price, the likelihood is that your product won't meet customer expectations and you'll end up with a factory where the machines sitting idle and a warehouse full of stock (and returns) that you can't shift. If the products are appropriately positioned within the market however, the result may be completely different.

Featured Research
  • Work Smarter Not Harder with Business Intelligence

    While this may have been true at one time, the days of BI requiring a dedicated team of experts to implement are over. Self-service solutions are making it possible for everyone, including small, local businesses, to easily implement BI in their decision making process. more

  • Best Practices for Contact Center Quality Assurance

    A contact center often brings about a prospect’s first real-time interaction with your company. As such, if it’s not a positive one, they’ll likely look elsewhere for help. With 69% of Americans more inclined to recommend a company to friends and family after a positive customer service experience, you’ll need to exceed expectations on the following fronts. more

  • The New 2017 Phone Systems Comparison Guide

    It was a painstaking process, but to help B2B companies start 2017 off on the right foot, we recently compiled a comparative list of the top 34 business phone vendors in the world. In one, easy-to-reference location, we’ve neatly outlined the information you need. more

  • How to Make Your Contact Center More Efficient

    There’s a very good chance that your contact center is underperforming. With consumer preferences continuously changing, strategies that were once effective now result in too many unsatisfied customers. Fixing this problem involves reviewing your current procedures and optimizing them to drive better results. more

  • 8 Common Pain Points UC Eliminates

    Many businesses rely on a collection of communication tools that they adopt to address specific needs as they arise. This strategy may seem to work in the beginning, but eventually will lead to a system that is cumbersome to use, difficult to explain to new hires, expensive, and effective in some areas, but full of gaps. more