Cheaper or Better

There are two ways to differentiate your product.

Either as cheaper or better than the competition.

Having both is a unicorn, having neither is a sure way to fail.

So which route should you take?

Well it depends.

Going cheap has it’s place—just look at Walmart.

But I’m personally not a fan. You’ll always have to sacrifice quality.

Which turns into a race to the bottom.

Then there’s the second option: be better and charge more.

It’s ultimately a win-win for you and your customers.

Not only do you deliver a higher quality product/service to them, you can charge way more money and improve your margins.

If you feel stuck in the middle, I encourage you to raise your prices and refine your offering.

It feels counterintuitive but experiment with it.

Get better, not cheaper.

Source: Boston Beer Co.'s Jim Koch on Self Reliance

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