Tuesday, June 3, 2008

Are You The Cheapest or The Best?

Within a few miles of our office, there used to be two restaurants that served Thai food. Both served the same clientele and had similar menus, although one was more expensive. I use the phrase "used to be", as the cheaper of the two recently closed. This wasn't a result of poor a poor pricing strategy or because of inadequate marketing, but because of quality. The second restaurant, which is still in business and thriving, simply served better food.

The lesson here is, when speaking in terms of commodities (be it products and/or services), competitive pricing isn't always the best way to achieve distinction in the marketplace. Would you rather be known as the cheapest, or would you rather be known as the best?


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