Only One Business Can Be The Cheapest In Their Market

When price is your USP, you leave yourself nowhere to go if someone can do it cheaper.

And they will.

In a holiday resort close to where I live, there’s a “Food price war” going on right now. Bars and cafés are offering a full English breakfast for as little as €2.50, and Chinese restaurants are offering an “all you can eat” buffet for €5.50.

What will they do when the new kid on the block does the breakfast at €1.99 or the buffet at €4.99. Will they follow? Will they beat the price?

If not, they’re exposed. There’s nothing wrong with building your business on being the cheapest.

As long as you can continue to be so.

Wouldn’t it be safer to build it on other principles?

I can’t imagine I’m in the minority in not being interested in the cheapest. I’d much rather have any or all of the following:

• The bacon done exactly the way I want it
• Being welcomed back like an old friend
• Being served by someone who remembers my name
• Clean toilets with soap and a dryer that works
• Being asked to come back again soon

None of the above will cost the businesses anything, but I’m saying I’m prepared to pay extra for them.

Sounds like good business to me. What do you think?

More?

1/ Why would I want to be at my computer when I can talk to real people?

2/ On motivation

3/ Why businesses should blog outside the box