"Never ever compete on prices; instead compete on services and innovation."

Competing on price alone isn’t the smartest way to run a business. Sure, you might attract a few bargain hunters, but there’s always someone out there who can undercut you. Instead, focusing on the quality of your services and the creativity of your solutions can set you apart from the crowd. This approach not only attracts loyal customers but also adds real value to what you offer.

Think about it: during the time of Henry Ford and the mass production of the Model T, cars were becoming accessible to the average person. But, eventually, other manufacturers caught on and started offering similar vehicles at competitive prices. Ford didn’t keep reducing the Model T's price indefinitely. Instead, the company innovated with the introduction of new models and features, appealing to what customers truly wanted—a better driving experience. This shift allowed them to stay ahead. They competed not just on the cost but on the value they provided through innovation and improved service.

Take Apple as a real-life example. They don't sell the cheapest smartphones on the market—far from it. Instead, Apple focuses on sleek design, intuitive user interfaces, and a robust ecosystem of services. When you buy an iPhone, you’re not just getting a phone; you’re getting access to iCloud, Apple Music, and seamless integration with other Apple devices. Apple’s innovation in technology and service keeps customers coming back, willing to pay a premium because they see the value in the entire package.

So, how can you apply this wisdom in your own life or business? Start by identifying what sets you apart. Maybe you’re a small café competing with big chains. Instead of slashing prices on your lattes, you could offer locally sourced, organic ingredients, create a cozy atmosphere, and host live music on weekends. Focus on what you can do that others aren’t doing—or can’t do as well. This will help you build a loyal customer base that values what you offer, rather than just looking for the lowest price.

Imagine you’re at a bustling farmers’ market on a Saturday morning. There are two stands selling homemade bread. One offers lower prices, but the other stand has a baker who greets every customer with a smile, remembers their names, and even takes special requests for gluten-free or vegan options. Which stand are you more likely to revisit? Probably the one where you felt valued and where your needs were met in a way that felt personal and thoughtful.

By focusing on these unique aspects—whether it’s exceptional service or constant innovation—you create something that customers feel emotionally connected to. They’re not just buying a product; they’re buying an experience, a relationship, and a trust that you’ve earned by consistently delivering more than just a price tag.

So, next time you’re tempted to cut your prices to win over customers, think about what else you can offer that no one else can. Compete on what truly makes you unique, and you’ll find that people are more than willing to pay for that difference.