“They’re just a commodity service provider” is a common response now when participants describe what they do with their ….(FILL IN YOUR OWN SECTOR).
That FILL IN YOUR OWN SECTOR ending is not flip.
Participants in research now make the “They’re just a commodity service provider” response for companies in the banking, media, store retail, food, beverages and leisure sectors.
If treated as said, and not explored further, these findings could cause consternation and management concentration on price and encourage slashing price and profit to be the cheapest (or nearly the cheapest) commodity service provider in the sector.
Given the daily reports of business disruption – such as Facebook to introduce fee-free money transfers; paid subscriber media closing; store sales static, some chains closing, and almost the last indignity – in-home coffee can now be at barista standards, the question that is being widely asked is:
“Is being just a commodity service provider the future?”
For some, that is the direction – and perhaps the choice.
But for more profitable business and longer term business, other approaches can be more effective.
These can include identifying why customers and prospects deal or could deal with you and your brand, allowing you to market to those, profitably, while leaving the commodity services provider position and tight profit risk to others.
To sell on more than base-price deals, you need to know what motivates your customers and prospects. That’s where we can help, and to find out how this knowledge will strengthen your business – please call or email Philip Derham today.