Without innovation, everything becomes a commodity

Today once again a whole stack of advertising flyers fell on the doormat. The discount offers scream for attention from the hallway. Three for ten euros, twenty-five percent off or two for one.... The traveling price circus had once again arrived in my mailbox. Of course discounts work like a magnet, customers are eager to cash in on the bargain. Right? But discounts work temporarily and wear off quickly. There's always some pesky competitor who passes under your price or customers who get used to your low prices.

Toe-curling, marketers who go full on lowest price. What do you think happens when price is your main topic of conversation? Do you really expect customers to talk about anything other than price? Competing on price is pure anemia, don't do it! You have so much more to offer. Why do you think Apple or Samsung release a new model of their smartphone every year, that they also update their operating system with the latest gadgets every year? Or Volkswagen, Kia and all the other car manufacturers who have elevated facelifts to an art? They know better than anyone else that without innovation, products end up competing on price. 

They are vital companies that innovate, improve and renew. And no, it's not just about their products, it's also about their positioning, brand story and distribution. The potential for improvement is truly infinite; you too could grab it if you wanted to. It is precisely these improvements that determine what (higher) price you can charge. Believe me, a commodity does not exist, it is a lie. Commodities are products that unfortunately have received too little marketing attention. Starting today, dare to accept the challenge to stop talking about price. 

Ruud Olijve

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