Quality vs Price
I'm a firm believer that the majority of consumers will choose quality over price. I certainly do.
I also believe that people these days often place more emphasis on service rather than product. For example, if you are at a restaurant for the first time and assessing it for future meals and the food quality has not met your expectations, the customer is still likely to return and give it a second chance. However, if you were to receive substandard service from the wait staff, it is questionable whether you would return.
Nearly 30 years ago I had lunch with a client at a new restaurant that had just opened and was part of a large new hotel in Cairns. Our expectations of quality and service were high, as was the expectation of cost. It took an eternity to get service and when we did the first two meals my client ordered from the menu were unavailable. He left without dining, stating he would never return. To my knowledge he never did. At that point we had not even considered the cost.
As small business owners, we can focus on our pricing often at the expense of quality. Sometimes it is worth stepping into the shoes of the consumer and considering what is important. I agree that in this ever-changing technological world of internet sales, consumer shopping is changing, and price is important. However, not at the expense of quality.
Let's look at another example of Value. Have you ever had a toothache that needed urgent attention? How much would you be prepared to pay? Assume you were to approach two different dentists for treatment. The first quotes a price but can't fit you in until next week. The second dentist offers to treat you today, but the cost is twice as much as the first dentist. Which are you more likely to choose? Both dentists are running their own businesses. One likes the certainty of having constant business and fills his diary well in advance. The other keeps gaps available in his diary for emergencies with no guarantee they will be filled. Of course, the price will be more.
If you book a last-minute flight to get somewhere, do you expect the price to be more than when there were a greater number of seats available?
My experience in business is that if your product or service is of the highest quality, the consumer will return and price whilst important becomes less of a factor.
