Sarah read on of my articles and emailed me to ask me how can she influence her boss that cheaper is the best way to grow their business.
I responded that perhaps she considered raising prices and using the extra money to create an amazing experience, she got really angry with me. Of course, I think she unsubscribed from my mailing list.
Here’s what I think: Cheaper is the last refuge of the person who’s not a very good marketer. Cheaper is easy and cheaper is fast and cheaper is linear and cheaper is easy to do properly, at least at first. But cheaper doesn’t spread the word.
Cheaper is a short term hit, not a long term advantage. Cheaper doesn’t create loyalty, because the other guy can always figure out how to be cheaper still, at least in the short run.
Even free isn’t cheap enough to win in the long run. Not if other people can figure out how to match what you’ve got.
So, if you can’t be cheaper, be better.