Great stuff from Seth Godin.
"…consider raising prices and using the extra money to create a remarkable experience…"
What?! Raise prices? Are you kidding? No.
This is the sledgehammer approach, but it points out that getting more customers is more about value than price and reducing price is the most unimaginative approach. Social enterprises who complain that they cannot compete on price are missing the point: don’t compete on price–add value to avoid the price issue or at least to lessen its impact. If you cannot add value, change your value proposition.
Seth explains it best:
"Here’s what I think: Cheaper is the last refuge of the person who’s not a very good marketer. Cheaper is easy and cheaper is fast and cheaper is linear and cheaper is easy to do properly, at least at first. But cheaper doesn’t spread the word (unless you are much cheaper, but to be much cheaper, you need to be organized from the ground up, like Walmart or JetBlue, to be cheaper). They are, you’re not."
Get down to basics…use activity based costing techniques and figure out what your customer really needs.
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