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Avoid Competing on Price

The Five Tips That Will Help You to Avoid Competing on Price


If you’re using price as your competitive advantage, it’s time to stop.

There are so many better ways to set yourself apart.

When you first start out, you have to try and carve a niche for yourself. You’re using all of the service business marketing tips you can find.

But you want to make headway fast.

In your mind, your price is the best way to do that. If you charge less than your competition, surely you’ll take business away from them.

And you might be right. Some customers will come to you when you use your price as your competitive advantage.

But you’re also setting yourself up for problems.

When you set your prices too low, you’re taking a bite out of your margins. And once your customers start expecting those low prices every time, you’re in serious trouble.

That’s not all.

Perception is reality when it comes to service businesses. Using your price as your competitive advantage can lead to a negative perception forming.

Customers see you as the “cheap” brand. You’re now the company that they instantly ignore because they assume that a low price means a crap service.

You need a new way to set your service business apart. And with these service business marketing tips, you’ll do just that.


Service Business Marketing Tip #1 – Build a Powerful Brand

How much of a difference can having a powerful brand make for your business?

Just ask Mike Matheny.

Mike Matheny came to CEO Warrior because his business had culture problems. However, he also discovered that branding was an issue. Before, the company operated under a boring name. It was never going to jump out of the phonebook. It just sounded as generic as they come.

With our help, Mike transformed the brand.

Today he runs Service Olympians.

That’s who Mike and his team are. They’re the best of the best in the service world. And since they rebranded themselves, they’ve more than tripled their yearly revenue.

People buy into brands. Customers want to work with people that they believe in. They want you to have a vision that inspires them.

If you get them to care about the brand, they’re not going to care as much about the price.

Step back and look at the materials that you’re sending out to clients.

Do they align with the message you want to send?

Are they consistent, coherent, and inspiring?

Would your marketing make you want to buy from your business?

Your price may not be the issue. If you’re answering “no” to any of those questions, it’s time to take a closer look at your branding.

Service Business Marketing Tip #2 – Stretch Your Vision

Why are you using price to set your service business apart?

For a lot of business owners, they compete on price because they don’t know what’s possible. They have limiting beliefs that stop them from exploring the true potential that their business has to offer.

That’s the position that Chad Love found himself in:

Chad Love is the founder of the appropriately named Chad Love Services. When he came to CEO Warrior, his HVAC business had achieved a turnover of just $400,000. He only had two trucks and three people on his team.

What he didn’t realize was that he’d placed limits on himself.

Chad saw himself as solely an HVAC specialist. That meant he needed to compete on price with all of the other specialists out there.

We helped Chad to stretch his vision.

Today, the business offers duct cleaning, crawlspace services, and electrical services. They’ve got 12 people and eight trucks.

Chad’s on his way to building an empire.

You might find yourself in the same position. Perhaps you only offer one service. Maybe you see yourself as nothing but a small business. And as a small business, you need to use price as your competitive advantage.

Get out of the small business mindset.

Stretch your vision and think about what’s truly possible. Don’t compete on price. Compete on the expertise that comes from having a larger team. Compete on the fact that you can offer more services beyond the single service that you’re offering right now.

Envision more for yourself and then use that vision to get more customers.

Service Business Marketing Tip #3 – Focus on Personal Growth to Benefit Your Business

You’re so focused on growing your service business that you forget to focus on something important.


You are more of a competitive advantage for your business than a low price could ever be. You have the expertise and the wisdom that your customers need.

But you’ve stopped focusing on yourself. You’re so deep in the business that you’re burning out. Your people can see it and your customers can see it.

Glenn Dickey’s customers could definitely see it.

Glenn Dickey came to CEO Warrior in 2015, shortly after he bought Marshall Services.

He found himself struggling with his marketing and his people. Plus, he didn’t have any processes in place. The company couldn’t compete because he had no idea what their advantage was.

He’d also lost sight of himself. Work wasn’t fun anymore and that attitude had seeped into the culture.

With CEO Warrior, Glenn began focusing on himself. His mindset shifted and he started focusing more on his family. He also started to focus on the relationships that he had with the people that he hired.

Glenn injected the fun back into his work. And it shows. Since he became a warrior, he’s boosted the company’s revenue from $1.89 million to $3.3 million.

You’re the example for your people to follow.

When you’re burned out and unhappy, your people will feel the same. Your customers will see that unhappiness written all over your business.

Work on yourself and focus on your growth. Doing so benefits the entire business and helps you to create a culture that becomes your competitive advantage.

Service Business Marketing Tip #4 – Become a Leader, Not a Manager

It’s worth sticking with this idea of your influence in your company playing a role in your competitive advantage.

Your people want a leader. They want someone who’s going to inspire them to do more. They want someone who loves what they do and relishes the opportunity to provide guidance.

Tom Casey wasn’t that leader before he came to CEO Warrior.

Tom Casey runs Griffin Service in Florida. The business wasn’t doing as well as he needed it to so he came to the Warrior Fast Track Academy.

He says the event gave him four years of knowledge in just four days.

He also says that he thought he was a leader. But he was actually more of a manager. He just kept maintaining the status quo instead of trying to inspire his team to bigger and better things.

After attending the academy, he’s leading a whole lot more. He’s helping his people to grow and be better rather than just providing the same old service.

A great leader always wants improvement. And that’s not just for themselves. They want their people to be better and love what they do.

A great leader inspires and creates amazing teams that serve as a competitive advantage. Remember that your people are your best marketing tool. If they love their leader and the business, they make it easier for customers to love them.

Service Business Marketing Tip #5 – Recruit A-Players

Your team is your competitive advantage. You need A-players in that team to stand out from the crowd.

That means you need a solid recruiting marketing strategy. Mark Doll struggled with that before coming to CEO Warrior:

Mark Doll came to CEO Warrior in 2018 with a business that generated about $700,000 per year. He found himself lacking confidence and he had people on his team who weren’t getting to where they needed to be.

All of the support from his fellow warriors gave his confidence a much-needed boost.

And that helped him to establish who he is and what he wants from his business. Mark built that vision into his recruiting marketing.

Now, he only recruits A-Players that believe in his vision.

The way you recruit is another great way to create a competitive advantage. Remember that it’s not just the customer’s opinion of your business that matters.

The opinions of your people matter too.

Poor recruiting efforts get you subpar players. And that means you can’t rely on your people to set your service business apart.

The Takeaway

You can’t rely on low prices to give you a competitive advantage.

Your service has so much more value than that. Plus, your customers will perceive you as the crappy option if you’re trying to be the cheap option.

Your team and your culture can set you apart. The people that work for you are the best reflection of the quality that your business offers. When they believe in the vision and the service, they inspire your customers to do the same.

Your brand influences customers far more than your price. And of course, you’re the biggest competitive advantage of all. You have the skills and knowledge. You just need to maintain your passion and become a leader for your people.

With a great leader, team, and culture, you don’t need to compete on price.
CEO Warrior can show you how to create your new competitive advantage.


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