I'm in the international shipping service, so at the end of the day potential customers usually are looking for the "lowest shipping rates", and I'm sure they view my services just as a "commodity" because if they don't like my "shipping rate prices" they can just go to one of my competitors. I don't want to play the "lower my prices" game to beat my competitor's pricing because that will just end up thinning my margins and putting me out of business. I've read some competitor customer reviews online, and I see people had bad experiences with customer service, their items handled poorly, shipping delays, lost packages, etc. So I try to increase my perceived value by stating how we do all these things better and customers won't have these same issues with my services, but maybe it's still not enough because all potential customers care about is the "lowest shipping rates".
You need to build value with your product and services for your customer.
According to Builtvisible, there are nine factors to consider when determining the value your product or service provides your customers:
*Product function: What will your product or service do for your customer? What effect will it have on their life?
*Points of differentiation: What is your product’s unique selling point? What sets it apart from similar products on the market?
*Quality: Is your product durable? Is it made to last? Will the services you provide continue to benefit your customers over time?
*Service: What “extras” do you provide your customers once they’ve paid for your product or service?
*Marketing: Have you created a “buzz” around your product or service? Are the benefits of your product well-known?
*Branding: Is your brand a true representation of the level of quality you provide, and of the values your company stands for?
*Customers’ existing relationship with your company: What have your customers’ experiences been when interacting with your company in the past
*Personal bias from experience: Unrelated to your company specifically, what does your target customer think about the product you offer?
*Price: How much do you sell your product or service for? *How does the price of your product compare to that competing companies’?
You can get more tips on building value (without lowering prices) in this blog: http://www.fieldboom.com/blog/customer-value/.