If you find your business commoditizing its services and trying to compete on price alone then maybe it’s time to take a step back and figure out what truly differentiates you from your competition. There’s only one “you”, so what makes “you” different in the eyes of your customers?
If your business value to your customers is not just being the lowest price service then be careful of the customer that chooses you on price alone. Any customer making a decision to use you on price alone will easily leave you for a competitor when they in turn offer a cheaper price.
This is just 1 tidbit that I’ve picked up by reading the book Pricing on Purpose by Ronald Baker. There’s a wealth of information in this book that can help any size business gain maximum profit by realizing the value they are providing their customers and pricing accordingly.
As a software developer I realize that the value I offer my customers is not my hands but is actually my mind. The value that I offer my customers is not the piece of code but the outcome the customer realizes from using the piece of code.
As a business owner, I have been able to change my perception of price and value which is allowing me to change my pricing model to be value based as opposed to hourly or cost plus.