Where Do Your Pricing Problems Come from? Positioning Problems – Yes It Is!
Let’s talk about pricing—a source of frustration for so many rural businesses.
Everywhere I go, I hear the same concerns: “Our customers are too price-focused!” or “We can’t charge more because we’re in such a competitive market!”
Here’s the hard truth: your pricing problems aren’t really about pricing—they’re about positioning.
When your positioning is weak, price becomes the only lever you can pull. And when price is all you have, you’re playing a losing game. Discounting your way to market share is like digging a hole with no bottom—it’s exhausting, destructive, and ultimately, pointless.
Admitting You’re a Commodity Is a Death Sentence
Most rural businesses fall into the trap of thinking they’re a commodity. They believe their product or service is indistinguishable from their competitors, so they resign themselves to competing on price alone.
This mindset is self-defeating. The moment you accept you’re a commodity, you stop innovating, stop thinking creatively, and start eroding your own value.
Discounting is the lowest form of marketing intelligence. It screams: “I’ve run out of ideas!” Worse, it tells your prospects you’re desperate—and desperate sellers rarely command respect.
Positioning: The Cure for Pricing Problems
If you want to stop competing on price, you need to reframe the way your customers perceive you. Positioning is the tool that lets you do that.
Here’s what great positioning looks like:
- You stand for something no one else does. Think about what makes you uniquely valuable.
- You reduce risk for your customer. Can you offer guarantees or assurances that eliminate their hesitation?
- You’re willing to do what your competitors won’t. Can you deliver something exceptional, unexpected, or unreplicable?
- You back up your claims with stories. Share truth and proof—real examples of how your product has delivered results.
- You create a brand, not a “bland.” A strong brand is unmistakable and memorable. A weak one fades into the noise.
The Power of Premium Positioning
Let’s look at some examples.
Apple has only 9% of global market share in smartphones, but they command a staggering 79% of the profit pool. Why? Because Apple uses positioning as a superpower. Their products aren’t just tools; they’re symbols of creativity, innovation, and status.
The same goes for brands like John Deere, Air New Zealand, and RM Williams. These companies aren’t trying to be the cheapest—they’re building preeminence in their categories. Their customers aren’t buying on price; they’re buying on trust, value, and emotion.
Strong brands command strong premiums because they create an unshakable sense of authority and desirability.
Positioning Is About Mindset, Not Money
Too many businesses think they need a huge budget to fix their positioning. That’s wrong. Positioning isn’t about spending more money—it’s about understanding your market and your customers better than anyone else.
Here’s what positioning requires:
- Confidence in your worth: Believe in the value you bring to the table.
- Clarity about your customer: Know exactly who your ideal customer is and what problems they need solved.
- Commitment to your difference: Stop trying to be everything to everyone. Own your unique space in the market.
Pricing Follows Positioning
When your positioning is strong, you don’t have to justify your price—it just makes sense. Your customers see the value you provide, and they’re willing to pay for it.
But when your positioning is weak, price becomes a barrier. Customers compare you to every other vendor in your space and start questioning why they should pay you at all.
How to Reclaim Your Positioning Power
Ask yourself:
- What can you offer that no one else can?
- How can you make your brand unreplicable?
- Are you telling your story in a way that resonates with your customers’ deepest pains and aspirations?
Remember, marketing is a battle for the mind. Your positioning shapes how customers perceive your value—and ultimately, how much they’re willing to pay for it.
If you can own your position in the market, you can own your pricing too.
It’s time to stop playing the discounting game and start building the premium brand you deserve to be.
Position yourself, price yourself, and profit.
