I loved this episode of Polish My Pitch with Diana because we got to talk about the hairy, ugly problem of niching based on cost savings.
I’m a little bit against positioning a business (and therefore their Elevator Pitch) on cost savings for several reasons. The biggest one being that it’s not sustainable.
As in the case of my Uber driver in Atlanta last year. He had had a huge thriving kitchen cabinet business and enjoyed at least a 10% cost advantage above his competitors due to his low overhead. Needless to say, business was good and his whole immigrant family was employed by the business. Lo and behold, a few years later, an Asian competitor undercut him by 25% which he simply couldn’t match. Then he had to shut down his business. Hence the Uber thing.
The next reason why I don’t like a price positioning is because every single vendor that a buyer meets tells them that they can save him money. And that’s the reason why 86% of buyers think that most vendors offer the same thing. They simply don’t see a difference.
I had to convince Diana to think about a different way to position and introduce herself. We came up with solving the problem of time loss or failure to fully claim the total amount of the insurance. She’ll have to do the research to decide which is the biggest, most expensive problem.
I think by the end of the podcast, Diana was convinced that a way to introduce herself without falling into the dreaded ‘money-saving-supplier’ trap exists.
If you thought what Diana went through was a great experience, email me at email@example.com to be my next guest.
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