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So Amazon’s big news this week was the Kindle Fire, a beautiful full color Kindle for movies, TV shows, music, books, magazines, apps, games, web browsing and more, for only $199.
It looks like there might actually be competition for Apple’s iPad.
Slate had an interesting piece about it called Amazon Opens Fire and in the opening paragraph, they discuss Amazon’s strategy:
To just about any criticism of its new Kindle Fire tablet, Amazon has a two-word answer. It doesn’t come with 3G Internet access? It’s $199. It doesn’t take pictures? It’s $199. It won’t immerse you in HD-rendered scenery as you race a virtual Bugatti through the streets of Tokyo at 180 mph? It’s $199.
It’s a potent pitch.
I think they’re right. With the iPad being $500 for its base model, that’s a big difference.
The Slate article goes on to say, however, they don’t think we have an Ipad killer on our hands, but:
. . . as my colleague Farhad Manjoo explained in a column that anticipated the Kindle Fire (right down to its price), Amazon doesn’t have to win over the iPad’s customer base to be successful. By offering the same core functionality—a browser, media players, and apps—at less than half the price, it will open up an entirely new market of tablet users.
Another interesting point from the article and ultimately time will tell, as the Kindle Fire won’t ship until November.
Now what does this have to do with Agency New Business? Glad you asked!
Don’t Do That!
I was speaking with an agency partner last week and pricing came up.
More specifically, the fact that this agency was finding itself lowering price to compete.
Probably not a shock to hear all kinds of red flags, alarms and “Sweet Lord, don’t do that!’ went off in my head.
You’ve heard it before: you can’t let price be the deciding factor and you most certainly shouldn’t lower you price.
And yet, there we were, and this agency was doing just that.
Now, it’s easy for me to say, I realize, but it’s simply true.
Worry About The Important Things
Looking again at the iPad vs. Kindle Fire: it’s too early, but invariably (if the quality is there), because of the lower price tag, Amazon will get some chunk of the iPad’s business.
And agencies that come in lower will get some of the business that should be yours.
It’s painful.
It sucks.
But let them have it, not sure you want that client anyway.
What’s happening, though, is you’re failing to differentiate yourself and you’re not establishing your expertise.
Have you heard it before? Probably.
But are you heeding the advice and doing something about it?
Positioning in agency new business is the critical first step that many agencies gloss over.
Setting yourself apart succinctly, out of the gate, backing it up with specific results and consistently establishing yourself as an expert via thought leadership will allow you to command the price you deserve.
Because the other agencies can’t do what you do, certainly not as well as you do.
Sure, the “Kindle Fire agencies” out there will get some of your business, and some of them are good agencies.
But you need to be “the iPad agency”: an agency that Marketers become devoted to, regardless of price, with quality of work that can’t be duplicated.
And you can do it. Think about your positioning today.
Are you “the ipad agency?”
