THE PRICE OF THE EASY ROAD
Warren Buffett, one of the most brilliant financial minds of our time, has said, using more or less words:
“The most important business decision when evaluating our company is our pricing power or the power that customers can understand, with our communication, the value added to the supply chain. So if we lack that power and it takes a session of prayer and spiritualism before we achieve that, then we have a terrible, failed business”.
Most of the time we talk about pricing strategy but rarely about how we can offer more value to our customers to improve their and our benefits. What many don't understand is that communication has a direct impact on the success of a business.
The right price is not based solely on production costs, but on the value your solution or service brings to your customers. Value is often a matter of perception, and this is where effective communication comes into play.
Business "Harakiri": Business today is like the Japanese tradition of "Harakiri", where ritual suicide is committed. Price competition often leads companies down a similar path, unraveling their value and success. This seemingly easy but disastrous choice may seem effective in the short term but with devastating consequences.
The Deadly Cycle: When a business competes only on price, it becomes selfish and simplistic. It stops innovating and completely forgets about customer satisfaction. Quality and value are sacrificed on the altar of cost savings. As prices fall, margins narrow, and the company is trapped in a deadly cycle of cost-cutting and loss of quality and market.
Communication and Value: This is where the Integration Coefficient IC comes into play. This approach is not just about products, but offering solutions and, most importantly, communicating genuine value. When you embrace the IC, you change the game. You fully understand customers' needs and are committed to satisfying them. You stop competing only on price and start competing on value, even changing or improving the efficiency of the supply chain. These actions change the client's perception and make them the natural spokespersons for your proposal. You stop being a mere supplier and become a strategic partner guiding them to success. This creates a competitive advantage beyond numbers and keeps you away from corporate "Harakiri".
The Integration Coefficient IC is the response to the trend of price competition. Join the IC revolution to communicate your commitment to comprehensive solutions by promoting sustainability and customer satisfaction. By contacting us you can delve a little deeper into how.
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