Welcome back! Here we are with #3 in this series on my “List of 3 special design force″ — the 3 main design tools of what I would consider the best “forces” to grow a business.
Assuming you have, then great – let’s dig in.
Design Force #3: Liberation from price competition
The priceless thing that design can give your business is that it makes your products free from price competition once and for all!
Can you imagine? It means that you will never ever have to compete again with prices, you will never have to care about competitors prices and people still want to buy from you and they will adore your product. You can impose the prices of your product that really meets its Value and you can make the profit that you really deserves.
Most of the companies simply cannot imagine their business without price competition. The reason behind is that they have never aproached this issue from a Design perspective.
The problem is that discounted prices don’t message anything but how much should you pay in reality for it. When a company gives a discount they take away the focus from the value of their product and move it right on its price.
In order to keep your prices high you need to be able to sell the Value of your product. You need to constantly point your prospects focus on the Value of your product not on the price.
When a company begins or participates in a price competition they strive to sell that product as cheap as possible increasingly lowering their profit. Doing all this instead of striving to sell it on its original or even higher price and giving higher value and quality: definitely higher than competitors. The goal is to constantly point your prospective customers’ attention on that you give them a better product than the competitors.
Even the tiniest discount has a harmful influence on the integrity of your prices because next time it can make quite difficult to achieve at that same customer not to focus on the price but to concentrate on the value.
So, why can great design make you free from price competition?
A company can imprison himself in a price competition in several ways but the worst of all is letting ’apple-to-apple’ comparison happen!
Do not let to your product be comparable to competitors!
An innovative designer creates a brand new category of product experiences during the product developement thereby makes your product incomparable with others.
One of the best example is the launch of the iPhone in 2007. When the iPhone came in a lot of people were sceptical wether a 500 dollar cell phone can be successfull that doesn’t even have a keyboard. The rest is history…
The iPhone was the first portable device that brought together the most important portable needs: internet+telephone; music+film; games+applications.
But the most important is that they made it with a brand new and way better usability than anyone else: a touch screen that didn’t need a pencil or anything to use. So they have created an entirely new user experience that was incomparable to others and thereby they made their product incomparable to other telephone so as a pioneer they could define the price based on its value and not on other telephones. That’s why when the iPhone was launched even it had five times the price of similar smartphones, people still went crazy for it!
The sceptical competitors only saw the price in this phone and did not understand the design-force behind. Since its launch people still addicted to the iPhone because Apple maintain its strategy of giving the best product experience to customers.
As humans we are programmed to constantly looking for new experiences. Therefore people will always queue the line where new experiences are offered – and they will always prefer to spend there their money either.
When you create a brand new category of product experiences, you also create for our product a competition-free-position: as a pioneer you will always be the only or the best solution for them so you will never have to think about lowering your prices to get higher trade and stronger position on the market.
So there is no fairy tale. In order to survive you need to constantly innovate: product by product. A business without innovation will allways struggle and will never be able to leverage and grow.
Why it is even possible that Apple constantly rises the prices of their laptops for years (see the case of the Retina Macbook pro) and still transacts more and more sales year by year?
In order to generate more sales and profit your product doesn’t need lower price but innovation: to create such a killer user experience that makes your prospects talking about it even at home.
We have a product design development method optimized specifically to help companies and entrepreneurs overcome these sorts of challenges that I mentioned during this series of articles: Winning predictably the buying decision; Building perpetual revenue by creating product addiction; Making products free from price competition . If you would like to hear more about it please contact us by clicking here!
In any case, I hope this list of design tools gives you a powerful filter to look at your business through, and creates some new thoughts and ideas for you.
As always if you have any questions or comments, please post them below!
CEO and Chief Designer
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