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| Bob Schultek Author of The Gauntlet |
When Henry Ford introduced mass production to the fledging automotive industry, his objective was to make Ford cars affordable for everyone by optimizing efficiencies in car manufacturing. But then, he and his team discovered that people didn’t want the cheapest car. They wanted a car that made them feel special – a car with some style, that was safe – a car that they were proud to drive.
Every successful brand is known for something more than their price, even those who have the lowest prices. Reducing price is easy and one-directional. At first, this action may send the message about commitment to efficiency and better outcomes; but soon, in a competitive market, there’s always someone else that is ready to go a penny lower than you. In the race to the bottom, your choices to compete get ever more limited, leading to brutal consequences that can destroy your organization’s purpose and values, bringing harm to your customers, your suppliers and ultimately, your employees.
What happens if you win this race, or worse, if you come in second? What will be left of your business? Will it be sustainable? How would having the lowest price make your customers proud to be associated with your organization?
How does your business deliver
a sustainable difference for your customers?
that you own your market niche?
