Top of the list in for many b2b marketers is working out how to cope with commoditisation in the marketplace. From widget manufacturers to niche professional services providers, the common woe is identifying and communicating true differentiation in over-crowded and price-sensitive markets. Trying to move up the food chain in the minds of prospects by wrapping everything up in value-added services to avoid price battles is great in theory but very hard to deliver in practice. Will this be the year when taking the brave step to becoming a true solutions provider finally pay dividends?

Using the internet as the ultimate research and negotiation tool, prospects and customers can source ‘lower priced-same value’ competitive offerings at every turn. Whilst suppliers are desperately trying to elevate themselves from vendor to trusted adviser status, the customer is increasingly able and willing to find their own solutions to problems.

Whilst many customers see the value of a reduced headache in using a one-stop shop solutions provider, they are also under pressure to squeeze every penny out of their budget.

When customers get home and look at refitting their kitchens they will probably talk to the ‘full service’ design and installation kitchen specialists – the solution providers. A few years ago they would be happy to go with the best value option. Not today. Now they will probably trot off to their bedrooms and play on Google for a couple of hours and realise that they can probably shave a few grand off the cost by sourcing products and installers direct.

As we develop more and more value-added services to increase customer-lock in and profitability, the customer is also able to more swiftly source their own DIY package of solutions.

Moving up the scale to become a true solutions provider is relatively easy with existing customers. They see the value of your offer day-in and day-out; relationships and account sizes can grow in tandem.

Pitching a solutions proposition to a cold prospect with the inevitable displacement of an existing supplier somewhere, is tough. A lot of new business wins are sweetened by ‘goodwill’ discounts, but does this immediately devalue the solutions offer from day one? Everyone expects some sharpening of the pencil for new business and remaining firm in price negotiations for a solutions offer is a real test of nerve.

Will the bravery of not budging on price for a solution based ‘value proposition’ pay long term dividends? If a prospect cannot see the true and unique value of a ‘sum of all the parts’ solution at proposal stage, will they ever see the value once the working relationship begins?

Those b2b marketers who have identified a genuinely unique value proposition based upon real customer needs should be brave enough to stick to their guns in pricing strategies. If you look at the b2c world for sources of inspiration for bravery, look at Stella Artois. Their ‘reassuringly expensive’ strategy was very high risk at the time. Beer was probably one of the most commoditised products around when they hit the market with this one. Just compare where Stella Artois is now against the lower priced brands, many of whom have actually been forced out of the market.

Will fortune favour your bravery in a similar way this year? Back to bitesize chunks