Commoditization is when products or services are so similar to each other that price becomes the overriding concern.Differentiation is when a product or service is so radically different from all of the alternatives that price is no longer a concern.
You can look at these two points as opposite ends of a continuum. Where does your business lie on this continuum?
If you’ve been commoditized…
• Your prospects and customers price-shop you all the time.
• You find yourself competing on price alone and losing out to low-balling competitors.
• Your customers are always haggling with you to lower your prices.
• Your customers or prospects simply don’t see or understand your added value (if any).
If you’ve differentiated…
• You have no real competition because you’re strategically positioned as being unique.
• You customers don’t complain so much about price…and even if they do, they still pay it.
• You can get away with charging more than your “competitors.”
• You’re positioned as the only viable alternative.
The solution to commoditization is differentiation. Commoditizers can only fight a tactical battle. Differentiators fight a strategic one.
I'll be going into more detail on this very subject in a special report I'm finishing up called "How To Surge Ahead of Your Competitors And Leave Them Eating Your Dust!"
Sign up for the "Strategic & Tactical Report" on the right and you'll get this report for free.
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