Don’t Fight The Price War

by admin on July 16, 2010

Most companies base their products and services on price only. Most people aren’t really price shoppers if you tell them what they should be looking for. If they know what value to shop for, that’s what most consumers will look for – value, not price. If you only concentrate and, as they say, live by price, you’ll die by price.

There are companies that can charge anything they want because they’ve convinced people they’re worth it. It’s not really that hard to do. Being the cheapest price around is the worst kind of business I can think of.

I wouldn’t want to be in business if I had to cut my prices to the bone just to get business. You want to be able to get one job that pays you $10,000 instead of five jobs that pay you $2,000 for the same type and amount of work. It’s easier. You want to present your products and services from a viewpoint of quality, not quantity. Many big appliance stores basically live by price. They end up having a very big turnover. You’re not very big. You only have so much personnel, square footage, and so many hours in a day. You’re going to need to focus on quality and rightly so.

Cheap prices lead you to cut corners so you can increase your profit margin. This tends to lead to unhappy customers. If your customers are unhappy, they’re not going to be customers for life. They won’t be repeat purchasers and won’t offer referrals.

It’s usually just a matter of time before the guy who’s cut his price to the bone and is undercutting everyone goes out of business. There’s always going to be someone who comes in and replaces that guy, going for the cheapest price. Just make sure it’s not you.

Educate Your Prospects And Clients

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Leave a Comment

Previous post: Direct Marketing Is The Most Testable Form Of Advertising

Next post: Educate Your Prospects And Clients