Your competitors are slashing prices in your niche. How will you handle the pricing challenges ahead?
When competitors slash prices, it's vital to strategize wisely. To navigate this challenge:
How do you approach pricing strategy when the market gets tough? Share your insights.
Your competitors are slashing prices in your niche. How will you handle the pricing challenges ahead?
When competitors slash prices, it's vital to strategize wisely. To navigate this challenge:
How do you approach pricing strategy when the market gets tough? Share your insights.
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This is a tricky one to give a one size fits all answer. I’d start with models. What sector/model do you serve? If your customer is only buying from you once ( like a wedding, house, kitchen, car ) then give an experience and show your excellence- do not discount. If they are a regular customer offer rebates to reward spend over discounting. ( spend x with us this year and we will give back y on total spend - say 2/3% - this way you have protected yourself from discounting and probably encourage more spend ) Or offer stuff for free. People expect discounts for ever they don’t expect free for ever. Ultimately, people want to deal just find better ways to give them that deal over discounting .
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"Compete on value, not price alone, and we are able to differentiate ourselves from the price-cutting market." What worked for me: Emphasize Quality and Service: Stress quality and personalized service we are offering and make them understand how these aspects set us apart from cheaper options. Bundling or Value Addition: Incorporate bundling or other perks for the customer to get more value for money without having to compromise on pricing. Communicate Our Value: Marketing helps me explain to our customers the advantages of choosing us in the long run compared to cheaper alternatives. This has been part of the key strategies that have helped us retain customer loyalty despite the competition having low prices.
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If you win a race to the bottom, you are not really a winner. There are some that only care about price. Do not lower your standards.
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Did you know 67% of customers are "Serial Switchers," leaving when they lack positive emotional experiences that foster loyalty? You can prevent these losses by creating strong customer relationships. 1. Service: Provide the right products, undersell by setting realistic expectations, and overdeliver by adding unexpected value. 2. Engagement: Ask questions to understand what matters to customers—then act on it. 3. Relationship: Always offer more value than you receive in payment. 4. Service Mindset: Actively seek opportunities to serve and support your customers. Personal connections make the difference.
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If you start competing on price it is a race to the bottom of the pile. Education about the value of what you offer is the best option.
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Stand by your pricing and emphasize your differentiators. Premium pricing for high value products and services can be a competitive advantage. Deliver something your competitors can't and invest in marketing to spread the word.
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We aren't the low cost provider. It's our service that keeps people with us. If cost if the only thing that matters, they use an online only service. As for advice to others? Walmart is the cheapest generally for things. You can't out Walmart them on this but maybe you can serve clients better. Stress that makes you unique. You don't need everyone to love it but for some potential clients you are the square peg for a square hole.
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If you're the lowest price, then your customers are loyal to the lowest price not to you. If you're price is based off your cost of doing business, and your business model is one that offers an experience that your clients love and only you are offering that experience, then chances are your clients are not going to be enticed by a competitor with a lower price. They are loyal to you for the experience you provide for them. Ex. KFC can lower their prices all day long and Chick-Fila's drive through will still be 40 cars deep. It's not about the price or the chicken.
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Well, as a small business trying to compete with much bigger, well resourced competitors, I have had to compete on service levels, not price. This means being super responsive, it means being available, it means being able to flexibly meet customer requirements and become trusted in advising on other services outside of my own remit and it means working on Return on Expectations (ROE), as well as return on investment (ROI). If I provide what the customer expects and then offer these additional areas I have described (without charge) why would they go anywhere else?
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Remember the human side to service based industries. In photography, the final product may be the photo. But AI will be able to do that better than we will. Our job is help make the client feel safe, comfortable, and engaged in the process. So rather than mirroring our competitor, we should focus on helping our leads realize the need for the human touch.
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