How to Avoid Competition on Prices?
How to avoid competition on price? If being a start-up, this is your concern then you are not wrong. As a start-up, you do not have so much in terms of capital and experience when compared to the big fishes who rules the ocean. They have a lot of surplus in terms of capital to be used as experiment and even to suppress their competitors by lowering the price of their product so that the small fishes are either dead or nowhere near their competition. So, what is that you can do to survive in this competitive edge of price? Here are few tips that you can apply for your survival.
Keep New Markets Handy
If competition is stiff, making your survival tuff, then consider whether a neighboring city or country might offer you a better option for your products. Your neighboring city or country might offer you better scope to sell your products at higher price. And do not forget to compare your products price with that of the competitors. It might be that they have raised the prices and you are still stuck with the bottom price just to survive the competition.
Develop Unique Selling Proposition
Falling in the same category and being called as "Me Too" is not the best idea. Develop a unique product that can be a synonymous to your company name. The reason being, if the competitors are drilling their prices, you do not need to follow the same rule of thumb and cut prices for your products.
Bundle Your Product with Services
Selling a unique product and washing your hands off is not good for the health of your company. Rather, opt to provide after sales services and other benefits along with your products. This will provide you with additional weight-age and you will not need to cut off the prices of your products. Repackage and upgrade the products to provide them with a fresh look or update it with more power-packed features.
Build Reputation
Known as one of the best in the industry will not help you long if you fail to create a great product. Moreover, if product and your name, both accompany each other, than price will never be a matter of concern for you. Clients expect to pay you a premium. If possible, try to get a testimonial video or at least ones where you can use customers' pictures next to their endorsement; they are highly impactful in helping clients envision themselves using your product.
Create Scarcity
If you have a product or service on the market for a while and wants to take it off, declare a sale on it. This will help you clear your inventories go off the warehouse and clear it for the new stock. Or, you can even create a scarcity by only offering a limited number of a particular item, promoting that only a few number will be available for sale.
Keep New Markets Handy
If competition is stiff, making your survival tuff, then consider whether a neighboring city or country might offer you a better option for your products. Your neighboring city or country might offer you better scope to sell your products at higher price. And do not forget to compare your products price with that of the competitors. It might be that they have raised the prices and you are still stuck with the bottom price just to survive the competition.
Develop Unique Selling Proposition
Falling in the same category and being called as "Me Too" is not the best idea. Develop a unique product that can be a synonymous to your company name. The reason being, if the competitors are drilling their prices, you do not need to follow the same rule of thumb and cut prices for your products.
Bundle Your Product with Services
Selling a unique product and washing your hands off is not good for the health of your company. Rather, opt to provide after sales services and other benefits along with your products. This will provide you with additional weight-age and you will not need to cut off the prices of your products. Repackage and upgrade the products to provide them with a fresh look or update it with more power-packed features.
Build Reputation
Known as one of the best in the industry will not help you long if you fail to create a great product. Moreover, if product and your name, both accompany each other, than price will never be a matter of concern for you. Clients expect to pay you a premium. If possible, try to get a testimonial video or at least ones where you can use customers' pictures next to their endorsement; they are highly impactful in helping clients envision themselves using your product.
Create Scarcity
If you have a product or service on the market for a while and wants to take it off, declare a sale on it. This will help you clear your inventories go off the warehouse and clear it for the new stock. Or, you can even create a scarcity by only offering a limited number of a particular item, promoting that only a few number will be available for sale.
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