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Problem 05 · Commodity Pricing

Competing on price is a positioning failure.

Every proposal ends in a discount. Every buyer conversation ends with a comparison against a cheaper option. Reducing price is not a strategy. It is a symptom of a category where the firm is perceived as interchangeable with the rest. The remedy is not a lower number. It is a clearer claim.

Built for owners and principals of established construction firms, manufacturing companies, and real estate practices. Applies to any organization whose category treats its offering as substitutable and whose commercial conversations default to price.

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Positioning Sprint

A $7,500 fixed-scope engagement delivered in three weeks. Produces a category narrative, a repositioned claim, and messaging architecture designed to end commodity pricing conversations.

GatePositioning Sprint
Investment$7,500 flat
Timeline3 weeks
FallbackStrategy Diagnostic
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Price competition is almost always a positioning problem, not a pricing problem. When buyers cannot distinguish one provider from another on any dimension that matters to them, price becomes the deciding variable by default. Established construction, manufacturing, and real estate firms escape commodity pricing by clarifying what they are specifically chosen for, for whom, and on what evidence. The Positioning Sprint produces that clarification in three weeks.

Named Research

Three numbers that explain why price wins your sales calls.

40

distinct elements of B2B value identified in the HBR research. Vendors over-index on functional and price. Inspirational and individual elements get left on the table.

HBR · Almquist, Cleghorn, Sherer · 2018

38%

match rate between vendor self-description and buyer experience. When the description fails the experience, price is the only variable both parties can agree on.

TrustRadius · Buying Disconnect · 2023

10+

people on the average B2B buying committee, across 10-plus interactions. The committee defaults to price when no element is clearly superior on a dimension they care about.

McKinsey · B2B Pulse · 2024

These three numbers say the same thing in three vocabularies. The buyer has 40 dimensions to weigh, you're emphasizing two, and the committee defaults to the only one that reads as a comparison. Positioning's job is to put a third dimension into the room.

Research Map

What named studies actually say about commodity pricing.

No invented benchmarks. Every row has a publisher, a year, and a public URL in the citations section at the bottom of this page.

Source Year Finding relevant to commodity pricing
HBR · B2B Elements of Value201840 distinct value elements. Vendors over-index on functional and price. Inspirational and individual elements differentiate.
TrustRadius · Buying Disconnect202338 percent match rate between vendor description and buyer experience. Drives the conversation to price by default.
Gartner · Future of B2B Sales2024Around 70 percent of buying journey complete pre-vendor. The page must carry the differentiation work before the call.
McKinsey · B2B Pulse2024Buying committees of 10, with 10-plus interactions. Without a clear non-price dimension, the committee defaults to cost.
HubSpot · State of Marketing2024Top B2B sites publish specific buyer-question answers. Generic category pages get treated as substitutable.
Forrester · Buying Group Engagement2024Buying-group engagement now matters more than MQL volume. The whole committee needs a non-price reason to choose.
Krzyzek · Pipeline Problem2024Most B2B service practices don't have a marketing problem. The positioning gap pushes every deal to price.
"Of the 40 elements of value in B2B, the ones that drive purchase decisions are rarely the ones vendors emphasize. Functional elements like product quality and price are necessary. Inspirational and individual elements like vision, hope, and reduced anxiety differentiate."
Almquist · Cleghorn · Sherer · Harvard Business Review · March 2018
Decision Check

Price pressure usually means the buyer cannot see the difference.

The buyer needs to know whether discounting is a sales discipline problem or a positioning failure that makes every option look interchangeable.

Signal

Deals turn into comparison shopping.

The buyer asks for a discount because the value gap is not obvious enough to justify the premium.

Root cause

The category frame is weak.

If you are framed like every alternative, price becomes the easiest decision variable.

Human concern

“Will this sound too niche?”

Sharper positioning may feel narrower, but it makes the right buyer more confident and less price-sensitive.

Best route

Positioning Sprint.

The sprint builds the category, claim, ICP, and proof system that supports premium pricing.

Three Root Causes

Why price becomes the only variable. And how to change that.

Cause 01

The category narrative is generic

When every firm in the category describes itself in the same language (quality, experience, service, trusted partner), buyers receive no basis for comparison beyond cost. Sameness in the category narrative forces the purchasing decision to a single variable. Price is the only variable that reads differently on every proposal, so price becomes the decision.

Cause 02

The firm competes on every opportunity

When a firm pursues every inquiry that resembles its service area, it communicates to the market that any buyer is an acceptable buyer. A firm that specializes in a specific project type, buyer type, or outcome signals selectivity. Selectivity produces pricing latitude. Pursuing all opportunities makes every opportunity negotiable on price because every opportunity looks the same to the firm.

Cause 03

Evidence is missing from the claim

Claims of superior capability without supporting evidence read as marketing language to sophisticated buyers. Established firms almost always have evidence (project history, repeat clients, specific outcomes) but fail to translate that evidence into the positioning conversation. When evidence is present, buyers weigh it against price. When it is absent, price is the only concrete comparison available.

What Diagnoses This

Positioning first. Broader strategy only if positioning is not the binding constraint.

The $7,500 Positioning Sprint is the correct starting point for a commodity-pricing problem. It runs three weeks. It examines the current category narrative, the firm's actual track record, and the buyers who value the work most. It produces a repositioned claim, a messaging architecture, and a proposal framework that establish the firm as chosen for something specific rather than considered alongside the rest.

If broader commercial questions sit above the positioning problem (channel mix, business development process, pricing structure), the $5,000 Strategy Diagnostic is the correct entry point instead. The Sprint concentrates on the narrative. The Diagnostic covers the broader commercial plan.

Start the Positioning Sprint · $7,500 →
Frequently Asked

Questions about commodity pricing.

Is competing on price a pricing problem or a positioning problem?

A positioning problem in nearly every case. When a buyer cannot distinguish one provider from another on any dimension except cost, price becomes the default deciding variable. Changing prices without changing how the firm is understood produces short-term margin loss without long-term differentiation. The Positioning Sprint addresses the diagnostic question of what the firm is chosen for, not how much it charges.

Can an established construction or manufacturing firm escape commodity pricing?

Yes. The escape route is not new capabilities. It is a clarified claim to a specific buyer, with a specific situation, for a specific outcome the buyer values above price. Established firms often have the track record to sustain a repositioning that newer entrants cannot. The Positioning Sprint draws that claim out of the firm's own work history and prices it into the go-to-market narrative.

How long does a positioning repositioning take to reach the market?

The Positioning Sprint produces the repositioned narrative within three weeks. Propagating it through sales collateral, website, proposals, and business development conversations typically takes another 60 to 90 days. Pricing conversations begin to shift within the first quarter of new positioning. Category perception shifts take longer, usually 6 to 12 months of consistent application.

Our buyers say they only care about price. Is that really true?

Rarely. Buyers defaulting to price almost always reflect a sales context in which the firm has not been given a reason to weigh anything else. When every competing proposal reads similarly and every firm claims the same capabilities, the buyer has no choice but to decide on price. Sharper positioning produces a decision frame where price is one factor among several rather than the only one.

Is the Positioning Sprint appropriate for real estate practices?

Yes. Real estate practices at the principal or team level often compete on proximity and commission rate because the category narrative treats brokerage services as interchangeable. The sprint clarifies what the practice is chosen for beyond geography and fee, usually by identifying the specific buyer and transaction type where the practice has meaningful track record and repositioning around that evidence.

How does this differ from the Strategy Diagnostic?

The Positioning Sprint concentrates on category narrative, messaging architecture, and the single claim the firm should own. The Strategy Diagnostic covers the broader go-to-market plan, including positioning but also channel mix, acquisition approach, and commercial priorities. Firms whose primary symptom is commodity pricing benefit from the Positioning Sprint first. Firms with broader strategic questions should consider the Diagnostic.

If there are 40 B2B elements of value, why does every proposal still come down to price?

Almquist, Cleghorn, and Sherer's 2018 Harvard Business Review research on the B2B Elements of Value identified 40 distinct value elements buyers weigh. Vendors consistently over-index on functional elements like product quality and price, and under-index on inspirational and individual elements like vision, hope, and reduced anxiety. When every proposal in the room emphasizes the same functional elements, price is the only variable left that reads differently across the proposals. The fix is repositioning around the elements competitors ignore.

Why do buyers say price is the only thing that matters? TrustRadius found a 38 percent match rate. What's going on?

TrustRadius's 2023 B2B Buying Disconnect report found only a 38 percent match rate between how vendors describe themselves and how buyers experience the product. When the description and the experience drift apart, the buyer cannot use the vendor's stated differentiation to justify a premium. Price becomes the only variable both parties can agree on. Repositioning around the work history that the buyer recognizes closes the gap and reopens the conversation above price.

Our buyers literally said "we'll go with whoever's cheapest." Is that real?

Sometimes literally, more often rhetorically. McKinsey's 2024 B2B Pulse data shows buying committees of 10 people across 10-plus interactions. The person who told you "cheapest wins" is reporting their internal negotiating frame, not the committee's actual decision rule. The committee defaults to price when no element of the proposal is clearly superior on a dimension the committee cares about. Positioning gives the committee a dimension other than price to weigh, and the rhetorical line stops controlling the conversation.

Sources cited on this page

Citation list. Every claim above traces to one of these.

  1. Almquist, E., Cleghorn, J., Sherer, L. The B2B Elements of Value. Harvard Business Review, March 2018. hbr.org/2018/03/the-b2b-elements-of-value
  2. TrustRadius. B2B Buying Disconnect Report. TrustRadius, 2023. trustradius.com/vendor-blog/b2b-buying-disconnect
  3. Gartner. Future of B2B Sales. Gartner Research, 2024. gartner.com/en/sales/insights/future-of-sales
  4. McKinsey & Company. B2B Pulse Survey. McKinsey, 2024. mckinsey.com/capabilities/growth-marketing-and-sales/our-insights
  5. HubSpot. State of Marketing. HubSpot, 2024. hubspot.com/state-of-marketing
  6. Forrester. B2B Buying Group Engagement. Forrester Research, 2024. forrester.com/research
  7. Krzyzek, P. Most B2B Service Firms Don't Have a Marketing Problem. They Have a Pipeline Problem. 2024. piotrkrzyzek.com
Where This Starts

Price is the symptom. Positioning is the fix.

Positioning Sprint · $7,500 flat · 3 weeks · Repositioned category narrative, messaging architecture, and proposal framework for established firms.