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Oct 3 • Business & Strategy 🧠
Why I Stopped Competing on Price (And Started Winning Every Deal)
Lost 7 deals in a row to cheaper competitors.
Rock bottom confidence.
Then discovered something that changed everything.
I wasn't losing because of price.
I was losing because of positioning.
THE LOSING STREAK:
Deal 1: Lost to $500 quote (mine was $1,800)
Deal 2: Lost to $750 quote (mine was $2,200)
Deal 3: Lost to $400 quote (mine was $1,500)
Deal 4: Lost to $600 quote (mine was $2,000)
Deal 5: Lost to $300 quote (mine was $1,200)
Pattern: I was always 2-3x more expensive.
THE BREAKTHROUGH CONVERSATION:
Client who rejected my $2,000 quote called back.
"The $600 guy's automation broke after 2 weeks."
"Can you fix it?"
I looked at his work.
Amateur hour.
No error handling.
No scalability.
No maintenance plan.
THE REVELATION:
We weren't selling the same thing.
He was selling cheap automation.
I was selling business transformation.
THE POSITIONING SHIFT:
From: "I build automations"
To: "I solve document processing problems permanently"
From: "Here's my automation quote"
To: "Here's your transformation investment"
THE NEW SALES CONVERSATION:
"I don't build cheap automations"
"I build business-critical systems"
"My solutions work for years, not weeks"
"I provide ongoing support and optimization"
"I guarantee your ROI"
THE PRICING FRAMEWORK CHANGE:
Old way: Automation cost + margin
New way: Problem value × solution percentage
Example client:
Manual processing cost: $45,000/year
My solution saves: $38,000/year
My pricing: $4,500 (11% of annual savings)
Their ROI: 844%
THE COMPETITIVE DIFFERENTIATION:
Cheap competitors:
- Build once, disappear
- No error handling
- No maintenance included
- No optimization
- No support
My approach:
- Build once, support forever
- Bulletproof error handling
- Monthly optimization included
- Continuous improvement
- 24/7 support via Slack
THE CLIENT EDUCATION:
"You have two choices:"
"Cheap automation that might work"
"Or business transformation that definitely works"
"Cheap breaks when you need it most"
"Professional scales as you grow"
THE RESULTS AFTER REPOSITIONING:
Next 5 deals: Won 4
Average deal size: $3,200 (vs previous $1,600)
Close rate: 80% (vs previous 15%)
Client satisfaction: 96%
Referral rate: 73%
THE WINNING FORMULA:
Premium positioning attracts premium clients
Quality focus eliminates price shoppers
Value communication justifies higher prices
Guarantee offers reduce purchase risk
THE GUARANTEE THAT CLOSES:
"If my automation doesn't save you $10,000 in the first year, I'll refund your entire investment and work for free until it does."
Results: Zero refunds requested
Confidence boost: Immeasurable
THE CLIENT TYPES BY PRICE SENSITIVITY:
Price shoppers: Want cheapest option
Value buyers: Want best ROI
Quality seekers: Want reliable solution
I stopped competing for price shoppers.
Started targeting value buyers.
Quality seekers became my advocates.
THE CONVERSATION THAT CHANGED EVERYTHING:
Prospect: "Your quote is 3x higher than the others"
Me: "You're right. Want to know why?"
Prospect: "Sure"
Me: "Because I'm solving a different problem"
THE PROBLEM DEFINITION:
Cheap automation solves: "Make this process digital"
My solution solves: "Eliminate this business problem forever"
THE OUTCOME DIFFERENCE:
Cheap automation: Might work, no support
My solution: Guaranteed results, continuous optimization
THE MINDSET SHIFT:
Stop competing on price
Start competing on value
Stop selling features
Start selling transformation
THE POSITIONING STATEMENT:
"I help businesses eliminate document processing problems permanently, with guaranteed ROI and ongoing optimization, so they can focus on growth instead of paperwork."
THE LESSON:
When you compete on price, you always lose.
When you compete on value, you always win.
Premium positioning attracts premium clients.
Quality delivery justifies premium pricing.
HOMEWORK:
Write your current positioning statement
Identify what value you really deliver
Research what your clients' problems cost them
Rewrite your positioning around value
Your price isn't your problem.
Your positioning is.
How are you currently positioning yourself?
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Why I Stopped Competing on Price (And Started Winning Every Deal)
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