There is no denying that competition is fierce in the WordPress spaceย โ regardless ofย whether youโre a developer, designer or are providing monthly maintenance services.
Even stepping outside of the immediate WordPress space and looking at services like hosting, logo design or photography, the situation is the same โย we live in a time where competition and pricing are often affected by both local and global pressures.
How can you deal with competition and the inevitable pricing pressure that accompanies it? And what specifically can you do to make your competition irrelevant so you are able to grow your business on it own merits?
In this article, Iโm hoping to cover some basic concepts that you can use in your business to help relieve some pressure related to competition โ maybe even make the competition irrelevant.
Your Competition Isnโt Going to Disappear
Nathan approached this topic a few weeks ago when he referred to the race to the bottom as part myth, part problem. He proposed that the issue of pricing pressure was sometimes caused by under qualified individuals who were over-reaching or misrepresenting their services.
While in some cases this is certainly true, we also have to take into consideration the fact that pricing pressure is often a result of global economic factors. There are many highly skilled WordPress developers and talented artists who live in countries where the cost of living is significantly lower.
But itโs not all doom and gloom. Not by a long shot. Price is only one part of the equation. Differences in business practices allow you to exploit a competitive edge, especially when you are targeting your local market. Responding to client emails, answering phone calls and communicating expectations are often areas where lower price contractors struggle and clients grow weary.
Yes, itโs true that you will still be under some pricing pressure locally โ there will always be competition in any market where you can generate a profit. But, without economies of scale, it becomes very challenging for a developer or designer to stay in business for any length of time if their prices are rock bottom. There are too many variables and too little margin for error.
Have you heard of the โunattainable triangleโ before? Basically, the idea is that each point of the triangle represents one competitive aspect (Iโve swapped out fast, good and cheap for something more applicable):
- Price
- Quality
- Service
In theory โ and certainly true from a personal experience standpoint โ you can only provide two of those points to your customers at any one time. There will always be one that suffers. If youโre a coffee drinker, youโll understand this comparison:
Tim Hortons offers low price coffee with quick service; their quality leaves something to desire. Starbucks, on the other hand, offers higher quality coffee and great customer service; but you pay a premium price. It would be virtually impossible for Starbucks to turn a profit if their coffee was high quality, their service was great and the price was cheap. Itโs just too difficult to turn a profit.
The same concept applies in the WordPress space. A developer might be able to provide a well-coded, compliant website at a cheap price. But I can almost guarantee that the service will be lacking. Alternatively, they could provide the same website with great customer service but there is a cost involved. In situations where quality and service are high, the client should expect to pay a premium.
As a general rule of thumb, any time a client approaches you looking for quality and service at a cheap price, you should seriously consider sending them elsewhere.
Maybe youโve tried ordering a cheap logo at some point in time. You know, the ones that cost $5-10. They often look great (even if theyโre not original), and the price is awesome. If you ask for a revision, however, be prepared to wait. Sometimes youโll wait four days just to get an email reply. Then another four days will go by before you see the revision. From a customer service perspective, that would rarely be considered appropriate by North American Standards. Wouldnโt you rather pay more and receive better service?
The unattainable triangle provides you, the developer or designer with an opportunity to create an edge: A competitive advantage not easily outdone.
In fact if you know your target market well enough, you stand to make most of your competition irrelevant.
Brand Preference versus Brand Relevance
David Aaker wrote a book called Brand Relevance which Strategy+Business named one of the top three marketing books of 2011. In the book he discusses the idea of positioning your business in one of two ways:
Brand Preference
Brand preference involves creating a desire for your brand over others within the same industry. Apple comes to mind โ one of the most well-known brands of all time. How many people do you know own an Apple computer but couldnโt tell you what kind of graphics chip was inside if their life depended upon it? They donโt care! They just want an Apple computer. There are a lot of consumers out there who prefer Apple as a result of very effective marketing.
A major downside to brand preference is that it can be very expensive. You are essentially trying to convince your prospects that you are the most popular choice. With little to offer in the way of uniqueness, youโre relying on your ability to be persuasive. An expensive proposition for any WordPress business especially considering the chances are high that a competitor will have deeper pockets than you do.
Brand Relevance
The second option and arguably the more challenging of the two involves creating brand relevance. This is undoubtedly the area where you want to focus the bulk of your time and effort. By becoming a highly relevant brand, youโll be making your competition irrelevant at the same time. But what does that mean?
Brand relevance basically involves creating a brand that is entirely unique โ meaning your goal is to place your WordPress business in a category of itโs own. You can do this through a variety of methods which weโll get to shortly.
Before we do, itโs important to point out that as a WordPress developer or designer, focusing on relevance is a much easier path to navigate. Not only is it less expensive from a marketing perspective but I think it allows for a much larger margin of error as well. Even if you donโt nail the relevance perfectly the first time around, youโll be able to refine what youโre doing over time and optimize your results accordingly.
Weโre not just focusing on the relevance of services though. Yes unique services can set you apart but so can many other factors. There are other steps you can take which will help to define your edge:
4 Specific Steps to Make Your Competition Irrelevant
Seth Godin does a wonderful job explaining exactly what a brand is. You can head over to his website to read the full definition but hereโs the gist of it:
If a client chooses your company over another or is willing to pay more for your services, that means they have placed a premium value on your brand. And your brand is represented not just by the services you provide but how you provide them.
Everything you do as it relates to your clients, has the potential to increase or decrease your brand value. Your brand value is your edge.
So what are the key areas worth focusing on?
1. Select a Niche
We donโt need to spend too much time here since niche selection was covered not to long ago right here on Elegant Themes. However, it bears repeating that by selecting a niche market youโll be able to:
- Create a more targeted message that speaks to a specific type of client.
- Charge more due to your expertise and knowledge of a specific market.
Once youโre done here, make sure you head over to read the full article. For now though, we can move on to step two.
2. Create a Unique Service
Services are the lifeblood of your business. Although itโs possible to provide a service that is completely unique, itโs not always an easy task to accomplish. As well, your ability to provide a unique service can be quickly overrun by competition. Thatโs the problem with edges. Their lifespan is finite and the more profit potential that exists, the faster the edge will dissipate. Itโs also too easy to get caught up searching for a unique service where none exists.
Think back a few years when mobile responsive design was just becoming popular. If you were one of the first developers who included responsiveness as part of your website development service, you had an edge. If as a designer you included .psd files for responsive layouts as part of your design process, you had a leg up on the competition. Both of those edges were short lived. Eventually mobile responsive design was readily available and clients came to expect it. There was no longer an ability to charge a premium.
You can also be unique by bundling together different services. Whether you do the work yourself is irrelevant. Simply providing a one stop shop for your clients can present an edge over your competitors. Just make sure that everything you do, you do well.
Your whole objective here is to create as much brand relevance as possible. When your target market looks at the services you offer, you want to come across as the obvious choice. You want them think โThatโs exactly what Iโve been looking forโ.
3. Create a Bold Personality Thatโs Client Centric
Referring to our previous definition of a brand, we know that although your brand is represented by what you do, itโs more about how those actions make your clients feel. Obviously, you canโt control how someone else feels but you can control how you and your business interact with the clients. Here are some things you might consider when developing your brand personality:
- Who are you speaking to? Make sure you understand your market before you craft your message.
- Be Consistent across all fronts. The reality of business today is that there are many forward facing fronts that need to managed concurrently. Website, social, newsletters and face to face. You should strive to deliver the same message wherever your clients are.
- Be Bold. If youโre the same as everyone else how can you hope to stand out? Bold doesnโt mean flamboyant or obnoxious; it doesnโt mean a flashy logo or bright colors and it doesnโt mean you need to get in peoples face. Being bold means means be who you are and be damn good at it.
4. Build Long Term Relationships
Letโs assume at this point that youโve done the following:
- Targeted a niche market
- Created a unique service that targets your specific niche
- Developed a brand that appropriately dictates how you will communicate and deal with clients.
Low and behold youโve landed your ideal client. Great news!
Of course, itโs only natural that you want to keep them around as long as possible and your best chance of accomplishing this is achieved through the delivery of great customer service.
Itโs sounds easy, and it is. But in reality, there are many companies that screw it up. This is good news for you because it means when customer service is done right, it presents a sizable competitive advantage.
One of the first things you should consider is making sure your message is consistent through the entire life-cycle of your client. Donโt promote your services or portray yourself through social channels using one voice and then switch to another once a client comes on-board.
Do you remember as a child when you watched TV commercials about toys and everything was dramatized? Cars jumping across treacherous crevasses; dolls that looked and acted like a real babies and superheroes who were invincible and flew through the air on their own.
Yet, when you finally received one of those toys, for your birthday or another special occasion, there was always a sense of disappointment. What you were sold was never quite the same as what you received. Itโs that sense of disappointment that you NEVER want to impart on your clients.
Beyond that, there are an infinite number of things you can do to keep clients happy and loyal. It just takes planning, time and effort. Itโs doesnโt have to be complicated or expensive. Treat your clients the way you would want to be treated and 9 times out of 10, youโll be on the right track.
Hereโs the most important thing to remember when it comes to building long term relationships: The more solidified your relationship with a specific client becomes, the less your competition will matter. Any time you are in a relationship where your needs are being met and you are treated fairly, there is little need to look for a better deal.
Conclusion
Weโve touched on several key areas in this post and itโs worth summarizing the most important ones:
- There will always be competition but itโs possible to create a competitive advantage that will make the majority irrelevant.
- Focus on building brand relevance as opposed to brand preference.
- Select a niche.
- Create services that solve problems specific to your niche.
- Create a personality that speaks to your niche.
- Once clients are on board, focus on building long term relationships.
What are some of the challenges you have faced when dealing with competitors?ย For the clients youโve landed, what do you think keeps them around for the long haul? Please share in the comments below!
Image Credit:ย BoBaa22ย / Shutterstock
The target niche should be deep or very specific so that it has very low competition…
Yeah, quality is what makes anything sustainable.
Thank you for sharing your thoughts Sir Tom, we are in a state of global competition and each of us should consider the (PRICE,QUALITY,SERVICE as you have stated above) to attract clients. I started to work as a web designer since 2010 and most of my clients really wants great service and of course great output. In my 4 years of working, my only secret is “Maintain clients relationships and provide quality assurance to a product”.
I am thinking of showing base price (starting price) to filter out the tire-kickers. Too many people are concerned only on the price.
I am a freelancer web designer working mainly with wordpress, some of my clients picked me over cheaper options (I charge much higher than most freelancers but charge less than professional design agencies) because I claim that I am not just a designer I provide business solutions, I tell them that I design websites to increase your revenue, find new customers etc, although my website is no different from what any other good freelance designer would do. Plus I partnered with an ERP company to sell their products which I advertise on my promotional material which gives the customers the idea that I am seriously a business focused designer.
Very much useful. Focused on the key points for making wordpress dev business. Keep sharing this type of post. Thanks
I’ve been working as a web design contractor for another company (which I love – my boss is amazing and so talented and knowledgeable; I’m learning so much from her!), but to make extra money I’ve started working to build a freelance web design business locally.
Finally got a client! I was referred by a former classmate whose friend needs some design work done.
However… now I’m nervous, but this potential client says he’s used to going to those online design quote services where the designer bids that he or she can make your logo or your poster or your entire website for $5. (Seriously, after he told me this, I looked at the site, and some people offer to do websites for $5. Maybe $10 or $20 if the client wants specific things included.)
I’m supposed to give this potential client quotes for some work he wants done. Now I feel intimidated. I know there’s no way I could give my work away for $5 (or even $50 or $100), and if that’s what this guy is hoping for, I’m probably not the designer for him.
But it’s so hard because I’m trying to build my freelance business. I’m going to start out by saying no to a potential client and turn them away right off the bat?
๐
So far I’ve not committed to anything; I’ve only asked for more details about the projects in order to give a more definite quote. But I don’t know… I just don’t know how to handle stuff like this! It’s good practice for me, I’m sure, but I’m still pretty anxious.
That above comment about quality, price and service just keeps running through my head.
You are imposing your own limits, not the client. As long as you’re confident you can deliver then why limit yourself?
As for those addicted to cheap thinking, you’re better off not having them as clients. Cheap thinking is always more expensive.
Sherry, I agree with Emily, don’t do work for less than it’s worth. Not only that but I’ve been doing web design work since 2004 and any time I gave a client like yours a deep discount to get that client, they ended up being a nightmare. Run away from them. Slowly build your client base and take good care of them, build relationships with them and they will come back to you. I’m in my 3rd redesign for many of my clients and some of them have been with me since 2004.
Good luck!
Be unique!!
Bidding wars are for people who like bidding wars. If your clients wants a great design service from a brand who will understand them, gets it right and delivers, then they will expect that the price will be right for all that too.
Andrew
Sherry-
Don’t do work for less than it is worth!! If you accept a job at a price lower than what you feel is fair or just because you’d like to land a job – then both you and your new client lose. You may feel resentment for doing the work for so little and it may show in your work and correspondence with client.
If they want quality, they will pay for it and if they think your proposal is too high then educate them on why it is more expensive. Tell them all the benefits you bring that a $5 design can’t. Another thing is if you do a job for so little and they tell their friends they’ll also expect this “great deal”
Stay true my friend and get paid for your work and time.
All the best,
Em (freelancer/designer/artist)
Thank Tom for sharing such powerful insights. They do remind me of a personal experience equation that worked for me: reassure + deliver + constant consultation = trust + acceptable output.
I agree with Noel. I try to be irreplaceable (or as Noel said: No one can replicate me) with my current clients and hope that they spread the word about my quality work & service (which they usually do).
I’m one of those people that “does everything” (including websites in HTML & WP, HD video production, logo design, flyer design, radio production, billboard design, ad design, basically you name it, I do it); however, I market only to small and medium businesses. I’m not looking for the corporate guys. So far I’ve been succesfull in that regards. I just hope that continues when I move next month. ๐
Sounds like me Matt. Except it’s real easy to get spread thin. You can also be super busy and making no profit. This is where I’m finding myself. I’m trying to compete with all these UPS/Fedex stores (but specifically) that have Brand Preference. They say they can do it all and we know there is no way someone who is boxing my package is designing a logo or website. But it’s the niche. What can we do that they can’t? Offering one on one quality and service that is unrivaled by retail or by online services. It’s really the only edge b/c competing on price along; there is no way to turn a profit without mass amounts of volume. I’m going to have to learn to increase my prices and be confident that while my price is higher I offer quality and service above the competition. Good article.
I’ve found the best way to remain in a “blue ocean market” (which is really what you’re talking about here) is to leverage myself as the primary asset for our clients. “I” am the one thing that no one else can replicate. That may sound like boasting but it’s the truth: none of my “competition” can be me. ๐