Is your product or service a commodity?  That is, can your potential customers find a something similar from other providers?  If so, you are probably having problems selling that have nothing do with your skill or the quality of what you are selling.

Commodities aren’t sold, they’re bought.  When all of the offerings are the same, price is the only distinguishing factor; and customers are going to search for the cheapest price.  It’s why generic brands are found in grocery stores – there’s not much that distinguishes the products from each other (rice is pretty much just rice).

If you have a product or service that has been commoditized, you have two options.  The first is to simply play the price game – which is a hard game to play because competition drives the price to a point where there’s no marginal profit.  The second path involves adding something to your offering that differentiates it from the rest of the market.

The second path is valuable because once you have a feature that’s different, you have something that you can “sell”.  There are a number of ways that you can differentiate what you offer, including:

1. Superior Knowledge – Can you be the expert in your field?  If you create a reputation that you have the experience and know-how to handle a specific segment of your market, people will come to you.  An example of is doctors who are specialists or auto mechanics who focus on one type of car (e.g. Volkswagens or diesel engines).  Customers that have challenges in your field of expertise will seek you out.
2. Outstanding Service – Why do people shop at high-priced boutiques when Wal-mart has proven it can sell everything dirt-cheap?  Quality is part of it, but in the end a pair of jeans is a pair of jeans.  Customers are willing to pay more for the personalized service they receive at those smaller stores.  The shopping experience they have in high-end stores is worth the extra money.  Even if you aren’t in retail, is there a way you can provide amazing customer service so that people will tell their friends about you?
3. Guarantee – How do you back up your products and services?  Guarantees and warranties are simple and powerful ways to differentiate yourself.  For example, Nordstrom’s will accept any returns, and Cutco Cutlery will sharpen or repair their products forever.  The stronger the guarantee, the more confidence people have when they buy your product or service.  What can you put in your guarantee that will make customers more comfortable and therefore more willing to pay for what you are offering.
4. Unique Feature – If what you have is similar to everything else that’s on the market, search for something that can be different about it.  Even though there were other ways to ship packages, Federal Express found a unique feature – do it overnight.  Continue to search for a feature of what you do that can be tweaked, and use that as a way to separate yourself from the others.  Because if you can’t, you’ll be stuck selling a commodity.