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A Uniquely Effective Positioning Tactic You May Not Have Considered

My last blog post, about positioning, was titled Stand for Something. This blog is about a potentially effective way to position your product or service that you might not have thought about.

A former client of mine was struggling with how to position their flagship product, a multi-hundred thousand-dollar system used in memory manufacturing.

For all intents and purposes, the client’s system was identical to the competitor’s system. Consequently, the client found themselves in a price war for every order because they couldn’t explain why their system was better—on paper, it seemed pretty comparable.

But during the analysis, we learned about one critical component of these systems: a (mostly) hand-made part that weighs more than a ton. No one keeps this part in stock because it a) is massive and b) rarely fails.

But when it does fail, production grinds to a halt. There is no workaround, and the lead time for replacement is approximately 90 days. All that downtime means a loss of hundreds of thousands of dollars, or even millions of dollars.

Unfortunately (for them), the competitor’s product had experienced two such failures over ten years. My client’s product, on the other hand, had never experienced this type of failure.

As you can imagine, this little bit of knowledge was worth a great deal to my client—and my client’s customers. Once we started incorporating this fact into the sales process, my client was able to raise prices by more than 15%, all of which went directly to the client’s bottom line.

When you’re figuring out your positioning, you can and should consider all the good things your product or service does. But it’s also important to consider all the bad things it can help your customers avoid. Sometimes, plain old “peace of mind” is worth a great deal in real dollars and cents.

Next time, I’ll provide some suggestions for effectively positioning various types of analytical equipment.

Stand for Something!

What comes to mind when you hear the word “branding”? A logo? A color? A catchphrase?

What should come to mind is a specific, unique position—something the product or service represents, or stands for.

Branding is the single best way to eliminate competition because, when it’s done well, you become a category of one. (There are lots of places to buy shoes, for example, but only one Zappos.)

A brand can be built around low prices, as Walmart and Ikea have done. But most high-tech companies would be better served to focus on something else…performance, yield improvement, durability, exceptional customer service. What do you do really well?

Trying to be all things to all people—“We offer the best quality at the lowest prices!”—is foolhardy. Frankly, it defies belief. How could you legitimately be great at everything? It’s a claim that invites well-deserved skepticism.

To build a strong brand, you need to thoroughly understand—and communicate—your unique strengths. Now, I’m not going to pretend that this is easy. It’s much easier to hire someone to design a snazzy logo or write a witty catchphrase. But a meaningful, resonant brand is worth its weight in gold. And it pays dividends for as long as you’re in business.

Over the next few weeks, we’ll delve deeper into branding and positioning, so stay tuned.

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