There are many books written based on the idea that having a low-price strategy is a big mistake. In fact, many so called pundits advise to price your products or services high and focus on providing high perceived value.
A high priced service is not our strategy at Smart 3rd Party…. If it was it would be a fatal flaw.
In any business there are only three pricing strategies available and one is a huge mistake.
1. High price – high perceived value
2. Mid priced or better put “no man’s land”
3. The low cost leader with a low price
In the maintenance and support sector the first position high price high perceived value is already occupied. The first position is held by the manufacture or OEM (Cisco, EMC, NetApp,, IBM, Dell HP etc.) and guess what nobody is going to change that perception. The middle is “no man’s land” and most 3rd Party Maintenance companies end up in the middle. They attempt to justify their high price with statements like “our price stands on its own due to our high value”. Unfortunately for them (fortunate for Smart 3rd Party) the end customer is responding back… we view all 3rd Parties as the same and are using price as the differentiator. When a 3rd Party makes a statement justifying their high price on their value the real story is they are blind and stuck in the middle.
Smart 3rd Party support and maintenance is accepted and recognized as an effective vehicle to reduce costs while delivering excellence. We have studied our market inside and out and know that the price is a key driver in the purchasing process of our clients. As Jeff Bezos, CEO of Amazon, said: “There are two kinds of companies: Those that work to try to charge more and those that work to charge less. We will be the second.” We not only recognize but embrace the concept of low cost low price leadership.
In short, we are and will always work to be the low cost leader of our industry and not shy away from our position. If you require great delivery of maintenance and support at the lowest price point in the industry, contact us now. Better Service, Even Better Price.