Cheaper is not my weapon in business.
This post was inspired by someone who asked me why GigaLayer’s prices are higher than XYZ and ABC hosts in Nigeria. So, I thought I should digest this here beyond the case of GigaLayer a lone.
First, the goal of every business is to be profitable enough to sustain it self for decades or even for ever as the case may be, to be able to serve it’s customer effectively and efficiently with the best service. Needless to say, no business wants to run broke in the end.
If you were to open a new shopping mall next to an existing one with a huge market position, how do you break into the market?
If your answer to the above question is “cheaper products”, then that’s where you are wrong. Being cheap is not a business weapon, I once wrote about this before “What happens when you are cheaper than your competitors”.
I on the other hand will look into more possibilities, more options and flexibility for the customers; like parking space, easier catalogues, more products and possibly additional services like home delivery etc but I will not go for being cheaper alone.
You see, if we go back to the agregerian age; business was carried out by that thing called “trade by barter” which simply means people trading things based on perceived value. Well, same thing still happens even with money, in this information age.
Do you know what deferences are there between that Burberry wristwatch and the Tiacichinko wristwatch (made in you know where). Oh yes, the material used in it, the efforts put to the product design, the social status of the product etc. But still they are both wrist watches, and you will choose by value!
The truth about being cheap is that, sooner or later someone is gonna find out how to be even cheaper than you!
You should not base your business on the war of pricing, instead you should look into the odds of providing a premium service with a fair pricing. Sure, nobody wants to be ripped off, so ensuring you deliver beyond what you are being paid for solves the puzzle.
So far we are not the cheapest in the industry interns of hosting but I am glad we deliver the best services. From our recent study (which we will publish soon) over 70% of our customers are fully satisfied with our services, giving us a rating of 9/10.
So, I will just iterate some key 5 reasons why we are not cheaper than XYZ and ABC and why we will not match the cheap band.
- We do not buy servers from just any data-centre, we hand pick the best of data-centres in the world with the best cooling systems, location and innovative technologies.
- We monitor and maintain a great stability and network balance on our servers. We do not overload or oversell any machine on our network.
- We register domain names directly with ICANN Accredited registrar and maintain the same level of status with local CcTLDS.
- We operate the most friendly, always ready to help customer support services. Happiness is part of our products bundle!
- We are building a business you can trust for the next 100 years!
Now, that is why we are not cheap and we do not compete with cheaper providers around the block. I hope you learn something out of this, so I can
arrogantly conclude with one of my tweets:
Competition is a distraction, my attention is for customers!— Ahmad Mukoshy (@mukoshy)
Life, Direction, Passion and Success!
When I look back, remembering the days I first decided what I wanted to do with the life I have, regardless of whether I will succeed or fail. That 17yr old me was self-exploring the work of craftsman on the world wide web, what the geeks of today call web-development.
During the course of my adventure, I faced lots of challenges with Web Hosting and even my first domain was confiscated because I was in Nigeria, never received a refund and so my quest led me to find a way to host without being kicked out… that was how Aimtech Hosting Company (GigaLayer) was born!
The other side of me has always been a business enthusiasts, when my friends were reading James Hardley Chase’s, I read Robert Kiyosaki’s. Should you come home, they also nicknamed me ‘CEO’ because of my keenness towards entrepreneurship and my only topic of discussion in the sitting room.
I have read a lot of business books, still reading and learning more in the area of Marketing, Sales and Leadership. (But hey, I’m a Physicist)
I graduated from Usmanu Danfodiyo University, 2nd Class honours in Physics. You may want to ask why I went to study something else in University? Well, I was naturally good in Mathematics and Physics, got distinctions in my O’Levels. (this is also a story for another day)
The thing I discovered is that, passion has a way of giving us direction in life, it shapes who we are and what we become. No matter how much we try to hide it or follow others track, our own inborn path will eventually outrun us.
The sooner we identify our passion, the faster we will gain a sense of direction. God made us all differently, with our own unique inborn creativity and affection; the challenge is to identify it.
I find passion to be the biggest thing at driving people to success, through the ups and downs you will still strive. I remember the saying, passion never fails.
"You need passion and energy to create a truly successful business" — Richard Branson.
I tend to work late hours, spend 12 hours a day working without feeling exhausted only to sleep eager to wakeup for yet another day! What else could have cause this?
Money is only a distraction, the Devil against success. Many people go for it, taking jobs they don’t enjoy only to get burned out frustrated and crushed. I’ve been there before, doing things I don’t enjoy for one reason or the other; in the end it’s always a regrettable action.
If your day job is not what you love, you’ll end up with sleepless nights thinking of what you love. — @mukoshy (May, 11th 2013.)
As at today, I run a web hosting company empowering over 1,000 customers and growing; I’m also learning as we grow.
What is your passion, what drives you to work everyday?
How far should you go?
At some some point in life… you will realize that you have done too much for someone or something, that the only next possible step is to stop; leave them alone and walk away.
It’s not like you’re giving up and it’s not like you shouldn’t try, it’s just that you have to draw the line of determination from desperation. What is truly yours will eventually be and what’s not will never be, no matter how hard you try.