When was the last time you checked what your competitors are up to – their prices, service quality, guarantees, premises, web-site, marketing materials?
Being the cheapest is a valid strategy (although one that can be very hard to maintain), particularly if you are selling commodities. Being the most expensive is generally a much more attractive option and customers often perceive higher value when the prices are higher (even if there is none). Strive for exceptional customer service levels, market-leading delivery times, or whatever it is in your industry that is important to customers, and you’ll be able to charge market-leading prices.
Of course, the aim should not be to just top your competition but do everything to the best of your ability and to do something uniquely different.
It goes without saying that your products and services are far better than those of your competitors, aren’t they. So your customers should be willing to support a higher price than their customers… If they’re not, you need to rethink what it is that your customers value. And then do it.
Your action for today: find out what your competition is up to. Check their adverts, do some mystery shopping (one to delegate, perhaps), ask your customers. And then work out how you can offer something more to attract customers so that you can justify a premium price strategy.