Competing on Price: A True Story

Wouldn’t you like to sell your services or products without worrying about price?

When I started my business, the question of ‘why should people buy from me?’ went through my mind, and there are still times it does these days.

When I first started, I used to compete on price, I thought that was a good way for people to check out my services and then stick with me as a supplier for anything they needed done.

At first it worked, for a while. Then other suppliers started entering the market, offering even lower prices than I did, and soon enough, those who were doing business with me at the time were gone.

At first I thought it was something with the after services I offered, or perhaps they were looking for more items that I didn’t offer.

I decided to ask my former clients what they were missing and why they decided to opt out.

The unanimous answer was, ‘Mikkell, we loved the service and the product you provided for us, but we were offered a better price and we went with that’.

And there it was, after competing for and obtaining clients solely on price, and trying to appease them with that, that’s exactly why they left.

Because for them, it was all about the price.

Ironic, isn’t it?

That’s when I realised that competing on price was not the answer. I needed clients to know what I could provide, with an offer that was irresistible that didn’t burn me out and still allowed me to create the value that I know I could provide for them.

Amongst all that, also develop an amazing fan base of loyal clients that liked working with me for the sake of working with me.

After lots of research, I looked into something called, lead magnets.

Now, lead magnets can be anything that entices a potential client to want to learn more about you. Most of the time it’s an offer that they want that helps them positively. In exchange, they give you a way for you to contact them in future.

The lead magnet could be a list of information, an illuminating article, a recipe book, a video on how to get something done, basically anything that the client saw as something they needed and you being the amazing person that you are, offered.

I thought it was a game changer, not only does a completely new person learn about you, but they see you as the person who can solve their problem and thus begin to trust you and soon after, buy from you. A perfect match!

I decided to try a lead magnet myself, and figured, let’s see what can happen from this. I’ve been competing on price for so long, I’m willing to try this out and see how it goes.

The results were night and day!

I started getting people who were interested in my knowledge after visiting my pages and then downloading the lead magnets.

They wanted to learn more from me, even ask me to handle their services for them, and some just outright purchased other products I offered.

I essentially got new clients from providing relief for their pain point and being someone competent to do so, and not just giving them a ‘cheaper price than everyone else’.

They were able to vet me from the lead magnet as it came across as a ‘free sample’ without actually costing anything more to me other than the initial time to develop it.

And now they share it with their friends and family when they need further assistance and my credentials are embedded within it so interested people who didn’t even know me before can contact me. Wonderful!

That is the true power of a lead magnet and I encourage everyone to create one for their own business and services.

If you are not sure how to create one, I can assist you with it. Send a message and we can get started.

If you have any questions on lead magnet research and creation, feel free to leave a comment or contact us directly here.

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