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The Pathetic Life of the Lowest Bidder

Here is little blog I wrote this morning after I just got done working out with this new ab-wheel I just picked up, It’s super amazing for building Popeye like core body strength. Pricing and package your services should be your core strength as well for having a lean and mean fighting machine for your business.

Commodity Pricing vs. Commodity Thinking
My definition of a commodity is something that is ordinary, common, even mundane, and is perceived by the consumer as having limited, usually low value, and being interchangeable with other products or services of its type. Generally speaking, for consumers, grocery items, household cleaning products, auto insurance, and a car wash are commodities items. For businesses, things like raw materials, office supplies, cleaning supplies are commodities. A universal example would be coffee. To a great many consumers, coffee is just coffee and there is no reason to pay more for one brand of coffee, or favor getting it from the convenience store on the far side of the street vs. the the near side of the street. If anything, lowest price could sway this decision.

Yet Dunkin’ Donuts and Starbucks prosper at successively higher price levels, few buyers really want the cheapest price; all smart people want or can be made to prefer the best value proposition for a product or service.

The Pathetic Life of the Lowest Bidder
It’s easy to think customers only want the cheapest price, but that’s only true if nobody gives them a reason to pay extra and get more. Far too many business owners are spending a fair amount of time and energy on cutting cost and giving away MARGIN so they can be the cheapest date in town. Not nearly enough of them are spending time and energy on creative ways to increase their sales and marketing know-how so that they can be the best paid gig in town.

Whether you sell electronic security systems or security guard services, you should be re-packaging, re-inventing and re-positioning what you do to differentiate your services from your competitors and make an apples-to-apples comparisons difficult or impossible to achieve.

The worst thing a security business can do is to be just like everyone else. And the worst reason your customer can have for buying your product is that it’s the rock bottom price in town. Live by cheapest price, die by cheapest price.

Clever, Interesting Packages are not Commodities
If you’re stuck selling a commodity, you better damn well master the fine of creating value and differentiating yourself from the competition. It’s no secret there’s a direct link between having a super successful security business and a killer marketing machine.

Packaging is similar to the “value meal” at McDonald’s or the kids meals at Burger King. You provide the convenience to the client of including items they would customarily buy, bundled together at a reduced price. A lumber yard might offer a “fence building kit” including plans, lumber, concrete, hammer, nails, and rental of an auger machine. A health club might offer a weight reduction and conditioning package, including a one-year membership, nutrition consulting, a one-year supply of nutrition supplements, and three months of personal training.

A security installer might offer homeowners a “Home-Safe-Home” package where they bundle a “Home-Safe-Home” safety and security audit, a four door, eight motion, three keypad security system with four video cameras system and one year monitoring at a reduced price. You need to learn from these examples and add value, add services, bundle things together and make it so that a true apples-to-apples comparison with some other brand is difficult or impossible.

A King’s Feast
Other then going completely out of business, and shirking off into the sunset with your tail between your legs and searching for a hiding place to cower – like getting an ordinary job working for another security outfit. The next to worst thing than failure is staying in business, but still shirking along with your tail between your legs, settling for mere table scraps income when a king’s feast is within your reach!

Marketing is the ultimate leverage in your business and can get you anything you want in your life.

Now Go Smoke Your Competition!Bob Maunsell
Former Sgt U.S. Air Force
Have an E.S.P style day, Easy, Successful, Profitable.

**Hey, Do you want to post my articles up on your blog? Go right ahead! Just kindly cite your source and give a link back to my page.Thanks!**


  1. Bob Smith says

    Hey Bob Great article as usual! The person that shops for cost is destined for loss! Value is always dependent upon options given the client to make a well informed decision. “Making it tough on the bad guys in Texas”

  2. Bob Maunsell says

    Hi Bob,

    I like your your quote “The person that shops for cost is destined for loss!”, keep up the good work in Texas!



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