Evan Carmichael explains why price wars destroy profit and what to do instead. He charges $2,500 for a half-hour blog post because clients pay for differentiated value, not the cheapest option. Focus on ideal customers who value quality, and let price-sensitive ones go to competitors.
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How do you respond to the competition? Look, whatever business you're in, there's going to be tons of competition. If there's no direct competition, you have indirect competition. You look at something that's brand new, you look at, you look at the Tesla electric roadsters, maybe nobody's done that before, but what are people buying? They're buying other cars, right? You always have competition, and they're always going to be aggressive. Everybody wants to win. You're going to have constantly aggressive competition. So how do you respond when they reduce their prices? Should you reduce your prices too? What do you do as a result? The most important thing here is with your business, you have to have something that sets you apart. Okay, it's not just whatever product or service you're selling. There has to be something unique about your business, how you offer it, so that when people come to you, they're not you don't have a direct competition that they're going up against. They're buying you for a specific reason, because nobody can offer the quality of service or the line of product that you have. You have to give them a reason to want to buy from you over somebody else. This comes as a result from a question on my newsletter list. Taiyo, who wrote in to say, "I have a question. What's the best thing to do when a direct competitor reduces their prices?" Do you reduce your prices, offer discounts, have promotions? What do you do? I look forward to hearing from you. Tayo, great question. And the loser's game is to start reducing your prices because you're just going to race to the bottom and you're going to end up undercutting each other, undercutting each other, undercutting each other, and end up with no money left, right? Entrepreneurs, we don't charge enough and it's because we're not bringing enough value. You got to figure out a way to to not worry so much about competition and bring more value to your customers. Because there's always a cheaper option, whether it's your store down the street, whether it's the guy online, whether it's your high school, you know, nephew. There's always competition, there's always a cheaper option than going with you, and you don't want to be the cheapest option. That is never the path to long-term success. You can't compete on price. You have to add more value and stand out. Here's an example. Companies will hire me to create content for their website. Okay, you want me to write a blog post for your site? It's gonna cost you $2,500. $2,500, maybe that takes me half an hour to write. That's gonna be the best blog post that's ever gone up on your site. You're gonna have more shares, you're gonna have more likes, you're gonna have more engagement than you've ever seen on your website. And companies will come to me and say, $2,500 for like half an hour of work? I could get somebody to do it for $500. I can get somebody to do it for $100. You can get people to do it for free. I don't care. It's not gonna be as good. You're coming to me because you want me. Because I've separated myself. I've differentiated myself. And I'm working with ideal clients. If you don't have the budget to afford that $2,500, then I'm not working with you. I'm working with different clients. And you're gonna have the guys who come to you only for price. You cut your price, you're going to have new clients. You raise your prices, those super price-conscious customers are going to go. Those aren't the guys you want. You want the people who see the value in your business, and it starts with you adding value. So whatever product it is that you're selling, you got to figure out a way to add more value to it, to either create your own new line, to add something to that product so it's not being sold the exact same product by your competition, you add a level of service on top of it that nobody can match. Something. You've gotta figure out a way to add more value and then only work with the clients who are ideal clients, who love this stuff, who eat this stuff up, people who value the service, people who value the extra work you're putting in. And don't worry about the rest of the guys. Let your competition fight to the bottom of the barrel for the low-price guys. There's always room at the top for quality. Go to the top. Be the best at what you do. Attract a loyal following and you can charge them more for whatever you're selling. Stop worrying about the competition and focus on adding value to your customer. Believe. For those of you watching, you like the video, please give it a thumbs up below. Makes me want to do more. And leave a comment below. Leave a comment, please. Let me know what you think. You have a question, put it below. I'll make a video response. Thank you so much. And I'll see you soon.
