This is a bit challenging matter. If the competitor has its manufacturing facility, it will be difficult to handle the pricing of the products. It is because they can lower the totals costs of their products and they are same-line products of ours. I personally think is we need to find a supplier that will lower its materials' prices or we can can have our own manufacturing company.
What is your course of action if a competitor in business reduces the prices of your same-line products?
- Thread starter Shavkat
- Start date
You just have to find an effective way of reducing the cost of yours not neglecting the quality of what you're selling or service rendered
You have to understand why he or she reduced the price before you go and crash your market. It might even be it is a clearance sales strategy. I believe you should find a way to offer more value.
If a competitor in my line of business suddenly reduces the price of his product, I would not reciprocate by reducing mine.
Rather, I would think about how to add quality values to my product and sell at the same rate. This extra added value would compel the consumers to demand for my product.
Rather, I would think about how to add quality values to my product and sell at the same rate. This extra added value would compel the consumers to demand for my product.
If the competitor lowers the price of their product, instead of reducing price, I would think of ways to add value to my products, such as offer additional features, expert advice, increasing speed of delivery.
Thanks for supporting my views. There is no point reciprocating the gestures in the same manner if one does not want to run into loss. One should think of things to be added to the product such that it would looks rebranding and offer additional values than the erstwhile products. When the customers see this, they would be forced to purchase it.
For a competitor to reduce the price, that means that there is a change in the industry that has made it possible. You also have to explore that advantage and reduce your price too.
Competitors do take this strategy of reducing their price with the hope that more customers would take advantage of low price to demand more of their products or services.
One cannot follow same suit because customers would quickly notice the changes and misinterpreted as rival trades strategies.
Because your competition reduced his or her price does not mean you have to do the same as well. Firstly you need to find out the cost of this action, and if you should do the same how it would affect you and the business.
This is the reality faced by many businesses today and it can't be prevented. In business a brand can make a name either because of quality or price. So if a competitor reduces price, I'll add more features to the same price so mine becomes more valuable.
In most cases, a brand will definitely make a name because of the quality of the product and that is why business owner must lay emphasis on this .
You would have to study to see if the reduction in price is industry induced or just a promotional strategy before you make a move with your own prices.
