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Selling on Price Is Bad for Business. Here’s How You Should Present Your Value to Customers Instead | Inc.

If your business strategy is to compete over price, then be prepared for a nickel-and-dime race to the bottom of the barrel.

In my book, All In, I talk about the different businesses I’ve started and how I’ve never really invented anything new. People love to talk about “the first-mover advantage,” but to be honest, I don’t buy in to that methodology. I’m not a pioneer. Never have been. I’ve never done anything first. What I’ve done is do it better. I’ve made a career out of being the second guy in the door. And I’ve been successful with a number of different companies, simply because I found opportunities where I felt I could execute much better than any of the competition. And more times than not, that’s all that’s required in order to win.

Do I have something against innovation? Heck no, I love it. I just believe it’s far better to invest in something that has a proven track record. Let the pioneers do all the research. Let them do all the hard work, go through all the bugs, and figure out what works. Let them find out who’s the customer and who isn’t. You can sit back and watch how the first guys did it, then try to improve it.

That said, you can’t just walk into a new industry (especially one that has been long established), and offer the same product at a slightly cheaper price. So how else do you convince prospective customers to go with you instead of your competitors, without the lure of price or some other value they are not receiving today?

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Selling on Price Is Bad for Business. Here’s How You Should Present Your Value to Customers Instead | Inc.com.

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