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  • Writer's pictureJaime Ventura Energy Consultant


Updated: Apr 1


The Business Harakiri

Warren Buffett, one of the most brilliant financial minds of our time, has said, using more or less words: The most important business decision when evaluating our enterprise is our pricing power or the power that customers can understand, with our communication, the value that is added to the supply chain. So if we lack that power and it takes a session of prayer and spiritualism before we achieve that, then we have a terrible, failed business.

Most of the time we talk about pricing strategy but almost never about how we can offer more value to our customers to improve our benefits. What many don't understand is that communication has a direct impact on the success of a business.

The right price is not based solely on production costs, but on the value that your product, solution or service brings to your customers. Value is often a matter of perception, and this is where effective communication comes into play.

The Business Harakiri: Business today is like the Japanese tradition of Harakiri, where ritual suicide is committed. Price competition often leads companies down a similar path, unraveling their own value and success. This seemingly easy but disastrous choice may seem effective in the short term, but it has devastating consequences.

The Deadly Cycle: When a business competes only on price, it becomes selfish and simplistic. It stops innovating and completely forgets about customer satisfaction. Quality and value are sacrificed on the altar of cost savings. As prices fall, margins narrow, and the company finds itself trapped in a deadly cycle of cost cutting and loss of quality and market.

Communication and Value: This is where the Integration Coefficient IC comes into play. This approach is not just about products, but about solutions and, most importantly, communicating genuine value. When you embrace the IC, you change the game. You communicate that you understand your customers' needs and are committed to providing what they really need.

You stop competing only on price and start competing on value, even changing the rules of the game in the supply chain. Thus, you change the client's perception and even make them the natural spokespersons for your proposal. You stop being a mere supplier and become a strategic partner that guides them to success. This creates a competitive advantage that goes beyond numbers and keeps you away from corporate Harakiri.

The Integration Coefficient IC is the response to the trend of price competition. Join the IC revolution and communicate your commitment to comprehensive solutions aimed at promoting sustainability and customer satisfaction. By contacting us you can delve a little deeper into how.

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