Did You Know: Compete on Value, Not Price

This philosophy applies both from the consumer’s and from the business owner’s point of view. It’s understandable that most people want to shop around for the best price on whatever product (or service), but at the same time, you have to realize that you often get what you pay for. In this way, while you may find a cheaper price at a different location, a store that sells something for a little more may actually be the better bargain.

Gary wrote last month that any given business should never compete on price, because you will inevitably cut into the quality of your product (or service) and possibly cut significantly into your bottom line. Following the same line of thought from a customer’s point of view, there’s got to be a reason why a particular company has the cheapest price. They necessarily had to cut corners somewhere.

Take web hosting, for example. There are other hosts that may sell plans for less than BlueFur, but they also come with more restrictions. Part of the reason why I decided to migrate Beyond the Rhetoric to BlueFur is because they offered better value than my old host. For about the same price, I am offered better reliability (uptime), easier admin access, and the ability to have as many mySQL databases and domains as I’d like. The cheapest plans with most web hosts limit you to a single domain.

If you host multiple websites, it actually works out much cheaper to go with a single hosting plan (that allows multiple domain) than to opt for several cheap plans (one for each domain). This concept can apply to just about any industry and business, from freelance writing to web design. For example, if one designer charges $100 for a design but does not give you any edits, whereas another designer charges $150 for a design but is willing to adjust the design a certain number of times, the second designer sounds like a better value to me.

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