Generate sustainable business and sales through the creation of quality products and stellar service not cheap offerings.
Focus on quality products to build a competitive advantage
- Competing on price alone leaves your business vulnerable to competitive threats.
- Instead, focus on offering quality products and services which customers cant get elsewhere, at any price this will become your competitive advantage.
- Studies show that businesses that invest in quality are more successful in the long run than their competitors that compete on price.
For many new businesses, its a common strategy: enter the marketplace with a lower cost product and scoop up customers who are hungry for a deal.
When a business is young, acquisition of customers is critical, and its often easier to get clients to take a chance on a new company if the price is right. But the problem with this strategy is that in the long-term, it becomes unsustainable and leaves you open to competitive threats.
After all, whats stopping your customers from jumping ship when the next new company (or your larger competitor) does the exact same thing?
Quality Products and Value Add
What should be stopping them is your companys focus on building a quality product that customers cannot get anywhere else, at any price.
Whether its a physical item or a service offering, it is absolutely critical for your business to add some unique value to whatever it is youre selling which will make customers think twice about if theyd really be getting a better deal elsewhere.
This differentiated value-add is what becomes your competitive advantage, and is what keeps your customers satisfied and loyal to your business.
Studies have shown that companies that compete on quality rather than price consistently do better in the long run. Success is built on frequent product reviews and a determined commitment to investing in the quality of products and services.
A company with the right outlook wont hesitate to put whatever capital expenditures are necessary toward improving the quality of their offerings, because a smart business knows that stressing quality will make it harder for competitors to enter the marketplace and compete.
Protect your companys future by focusing on quality today. A quality product and a quality company will always win out over a cheaper imitation in the long run.
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About the author
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Raffo. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.Website