I’m not one of those obsessive (or perhaps “responsible” is a better word?) parents who insist that my child continually reads, does artwork, plays music, or generally engages in productive activities.
As a result, my 9-year-old son, Ivan, does a LOT Cartoon Network, Nickelodeon, and Disney Channel watching at our place. And now that we’re sequestered together in our 1,200 SQFT apartment 24-7, 365 — thanks to COVID and distance learning — YAY! — my wife and are doing a LOT of TV watching by proxy.
Of course, lots of network TV watching means lots of commercials.
Several of which, thanks to their relentlessly heavy rotation, have been POUNDED into my psyche.
One of the most frequent flyers is State Farm Insurance…
In a naked nob to Political Correctness, the original “Jake from State Farm,” a slightly scruffy white guy phone operator, has been replaced by a dynamic young black man who, rather than always stuck on the phone in the office, is out and about seemingly everywhere.
In the current campaign, everyone from the pizza delivery gal to the spa attendant is looking to repay Jake for the “special deal” he got them on their insurance. To which Jake continually responds: “You got the same deal as everyone else.”
Another heavy hitter is AT&T Wireless…
In their latest campaign, a long time customer is basking in the revelation that he (and from his perspective, he alone) got a special price normally available only to new subscribers.
And here again, the cute + perky sales rep, featured in all of ATT&T’s recent ads, insists any existing customer can cash in on this same “special offer.”
Why are these organizations investing in big-budget TV advertising?
(Campaigns that have them spending millions of dollars to buy airtime and produce spots.)
Because when you’re competing on price in a stiflingly competitive marketplace, out promoting your competition is your only option.
How come?
Think about both of these ads. What’s the common denominator? The “special deal” isn’t a special deal, because it’s available to everyone. And in the end, the “special deal” is just a lower price.
Thus, the only thing differentiating State Farm + AT&T Wireless from their competitors is the price. That is until one of those competitors drops their price even lower.
This approach commodifies these services, meaning price is the only thing that sets them apart.
Which of course, is a race to the bottom. Because you can only compete on price for so long. Until you wind up pricing yourself out of business.
Not to mention the fact that when price is your biggest differentiating factor, the quality of your clientele is destined to tobe undesirable, as price-focused buyers are no one’s ideal client.
The Marketing Lesson Here? (And boy, is it a DOOZY!)
Price should be your LAST consideration when it comes to marketing your business.
Why?
First up, because there is AWAYS a cheaper option. A competitor is ALWAYS willing to undercut you in an effort to steal your business.
Secondly, because price-driven clients are among the worst you’ll ever find. These folks are concerned about cost above all else. And they’ll desert you the moment a cheaper option comes along.
And finally, because you can charge competitive, and even premium rates for your services, and still win and keep business. And in most cases, you’ll actually win MORE business when you leave price out of the equation.
Consider Verizon Wireless. They’re the most expensive wireless provider going. Yet they hold the largest market share. How come? Because they offer the best COVERAGE of any wireless service.
And when you care more about the ability to make calls, sends texts and emails, and browse the internet from your smartphone without service disruptions than you do about price, Verizon is your best option.
Are You Making The Mistake of Focusing on Price in Promoting Your Business?
Probably time to rethink your strategy. And if you need help in that department, I’m here for you! Let’s chat… 310.466.7893 + ryan@ryananys.com
