This is a guest post by Vistage Speaker Ian Altman.

Anyone reading magazine covers and newspaper headlines has a pretty good idea that we are in unique economic times (ya think?). At a recent talk, I posed the question “so in these economic times, what’s the most important factor for a decision?”  “Price” was the resounding answer from most of the 70+ CEOs in attendance.

But, if you have a business that is trying to conserve its resources, is price the real issue?  If you can obtain the exact same solution from two sources, you might want to buy from the low bidder.  But, are you delivering the EXACT same solution as your competition? Most importantly, does your customer view your solution as identical, or do you offer some differentiation? Would you want to save 10% instead of choosing the higher priced solution that you felt had a greater chance of success? Would you hire the “low bidder” as a consultant instead of hiring the one most likely to overcome your challenges and help you meet your goals? Let’s hope not.

Price matters when sales teams and management feel that price matters. When markets shrink and management teams get nervous, it is easy to lose confidence in your offerings and jump with both feet into discounting. And, if your offering lacks differentiation, then price can certainly be the only decision factor. But, if your team has the confidence that your solution delivers better results, then that confidence can translate to higher margins. As important as it is to have confidence in your own offerings, it is absolutely essential that your client realizes the impact of their current problems, and how you are in a unique position to help them overcome their issues.

If you invest the time with your client to mutually understand their issue, the relative impact of that issue on their business, and the ultimate importance of solving the problem, then you might help them realize an underlying value that goes beyond price. Clients are most comfortable with the vendor who best understands their needs, often more so than the vendor with the slickest product or service.

It takes some effort, and requires discipline.  But, if you can realize an additional 10% to 30% of margin, would you be willing to put in the time to deliver value that goes beyond price? In competitive markets, in order to win you can either have the best methodology to convey value, or be the low bidder. Which approach is right for you?

Ian Altman is the founder of Grow My Revenue, LLC, a consultancy that helps CEOs and their organizations to define their market position and enhance sales and business development to enhance opportunities for shareholder value and liquidity.