In today's competitive marketplace, you always hear a lot about how things have “tightened up” and how everyone is racing to the bottom line when it comes to pricing jobs, products, and services. The reality  is, no matter what kind of economic climate we're in, customers are always looking for the best price. There is little doubt that they squeeze suppliers even harder in tough times. This added pressure leaves many companies stuck between a rock and a hard place; either they get in the race just to keep the business, or they risk losing a client by sticking to economically viable pricing. While there are many companies that cave to the pressure of going to the lowest price, there are others who win jobs with profitable pricing, even in very difficult economic times.

So just how do you win a deal when all the competition is under-cutting each other? Contrary to popular belief, price is not the only consideration when it comes to making a buying decision. While price does play an important role in the decision making process, there are many other factors buyers take into consideration before making their final decision. The more obvious factors include:

Quality – Typically the lowest price does not provide the quality buyers really need. There's nothing worse for a buyer than to go with the lowest price and find the product or service failed and they are left having to spend the money again.

Time to Market – Time is money. The faster companies get what they need, the more money they make.

Great Service – Knowing that a supplier is there for the customer to deal with any problem at a moment's notice can easily be worth paying a higher price.

The downside with these obvious factors is that every company will promise some variation of these benefits (whether they deliver or not is another question altogether). No one goes into business saying they will provide a sub-standard product that might get delivered sometime, or that they won't provide good service.

Everyone is going to sell themselves on quality, time to market, and great customer service, making a strong case for buyers to consider price at the top of their decision making list. To win deals in a tough market you have to think outside of the obvious and create your own value propositions that the competition simply does not, or cannot, offer.

This is when it's a good time for businesses to think differently. If your company appears as a one trick pony to the customer, it will be difficult to get them to consider anything but price when they make their decision. What I mean by a one trick pony is, if you do not add any value to your work besides just doing it, then really it is only all about price. All buyers expect to receive a certain level of quality, adequate time to market, and great customer service no matter what price they pay. It's like buying a new car; in reality particular engines and transmissions don't exactly sell cars anymore because all cars have them and they are pretty much the same. Cup holders, Bluetooth, GPS, on-board entertainment systems, and services like OnStar sell cars now, and some of these services are well outside the core business of building a car.

In order not to get caught in the trap of racing to the lowest cost, business owners should focus on things that add value to the customer beyond the basic things they expect when they make a purchase. While it's different for every business, some not-so-obvious added values to think about are:

One-Stop-Shop – What can you provide a customer that compliments your core business and makes it easier for them by having one less supplier to call?

Information – Your company personnel are experts in your field so how can you help the client save money and time by working closer with them before or during their project?

Process – What peripheral services could you provide them that no one else bothers to that would make a big difference to the client?

The key to making price less of a factor for buyers is figuring out how you can add cup holders, Bluetooth, and on-board entertainment systems to your offerings. When you make it more about the value beyond your core service, it's hard for buyers to argue that paying a bit more isn't worth it.