Fighting Commoditization by Brian Buck
In a world where we have access to almost limitless information, we feel like we can be experts in any field. That same access also makes it easy for buyers to strip away the uniqueness and value of sellers’ products and services, relegating them to nothing more than commodities. If this is how it really is, then sellers beware — differentiate, create value, or suffer commoditization. However, what happens when this is not how it really is — when there actually is value and specialization that’s not readily ascertainable, yet a buyer attempts to commoditize the purchase? The consequences for both buyer and seller can be devastating. I want to be very clear about something: If you don’t have a unique differentiator, and if there are many other competitors in the marketplace that do what you do, then you’re at risk of being commoditized. You can’t blame a buyer for pointing that out to you! If your competitive differentiator is price — i.e., you’re the low-cost leader — then don’t blame the buyer for treating you like a commodity! After all, commodities are all about price.
differentiators in a manner that resonates with the buyer. This will require a good needs analysis so that you can grasp the issues and problems. Then help the buyer to understand how you pull together quotes and provide them with what they need. Non-commodity players appreciate the needs of their buyers and provide solutions to solve those needs.
For sellers, the best thing you can do to stay out of a commodity or price-only conversation is to demonstrate that there’s something more to talk about than price. If you act like a commodity, you’ll be treated like a commodity. Be ready to discuss your value proposition and key
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