Microsoft doesn't get it

You've seen these PC "laptop hunter" commercials. The one above features "Lauren" a savvy shopper looking for a new laptop with speed, a comfortable keyboard, a 17" screen and a price tag under $1000 dollars. Now let's focus on what the real issue for "Lauren" is (and it has nothing to do with a comfortable keyboard, or not "being cool enough for a Mac", or sufficient hardrive space): its getting an inexpensive computer. This is the bottom line. When she "enters" the Apple Store and comes out, she only mentions that she can't find a computer in her price range. Then at the end of the commercial the price is once again the focus, as what's highlighted is her new (inexpensive) purchase at just $699.99.

In the creative economy of the 21st century the question I propose is this: Do you really want the competitive advantage that your company brings to the table to be that your product/service is cheaper than the competition? Now the argument that can be made is that in these tough (recession) times cheaper is better. Well two things. 1. This recession will not last forever 2. In these tough times Apple continuously posts strong revenue numbers, sales and profits.

What Microsoft and other companies don't get is that the companies that will capture new market space, increase revenues, and create fans that will rave about their brand will be those who are doing something different, truly distinctive and are adding value to their customer's lives. Bottom line: are you creating a unique and impacting customer experience that only your product/service can provide? This is the real value proposition in today's market. If you're also pricing it competitively, then you're in that much of a better position as well. But to battle the competition on "cheap prices" as your weapon of choice. . . this is a grave strategic error.

A great example of a brand that isn't competing on "cheap prices" but on offering something (once again) unique and truly distinctive - Trent Reznor and NIN. His instrumental album Ghosts I-IV, released on March 2nd of 2008 in a multitude of different formats at nin.com, immediately sold out of its run of 2,500 “Ultra-Deluxe Limited Edition” versions (complete with vinyl, deluxe packaging and a Reznor autograph), each with a $300 price tag (that's not cheap). Folks, the sum total of all the money he made in first week sales after self releasing Ghosts I-IV: $1,619,420 dollars.

Ladies and gentlemen its not about cheap prices (the internet has forever changed the rules on that). It's about offering value.  Its about offering difference.  Its about offering something that enhances the quality of people's lives.