As a reminder, your USP is what positions you in the marketplace --- are you, or what you sell, the best, the cheapest, the fastest, the easiest, the longest lasting, the most reliable, the most prestigious? Your USP is what makes you distinct from your competitors, but it's often the thing first-time business owners don't fully understand.

Lara and I just started working together last month, and one of the first things we had to tackle was her USP. As a web site designer, she is part of a well-developed marketplace often competing with several other companies for every job.

"I really don't know why they keep picking the other guy. It's so frustrating after I've worked so hard to get in the door in the first place. The only way I feel like I can get the job is if I underbid it, but I'll never be able to keep my business running that way."

"Well, you're right," I replied. "You shouldn't have to lower your prices just to get every job. There are certainly web designers out there who are charging less than you, but there are probably an equal number of them that are charging more. So, if we assume that there are companies hiring your higher- priced competitors, then maybe price isn't what every prospect bases their decision on."

"It sure has been for me. That's always the reason they say they didn't choose me. It makes me think that I'm going to have to lower my prices in order to get any work, but like I said, I'm not charging anything out of the ordinary. My hourly rate is at the market average as far as I can tell."

There were a couple of issues that we explored during the rest of the conversation, including her pricing, her competitors, her target market, her mission, etc. But the one that really hit home was her USP.

Up until this point, Lara didn't realize that she was the one forcing her prospects to make their decisions based on price. She was marketing using the Competition Model instead of the Distinction Model.

In the Competition Model, your prospects see you as offering the same service as your competitors. In their mind, there is no delineation between what you and your competitors offer and how you offer it. So the only decision-making factor they are left with is price.

If they think all web designers offer the same level of web site design, can complete it in the same time frame and will be equally professional, what's left? That's right