- by Rory Ramsden
So, here’s the situation: your price is $26.25 and our competitor’s price for the same product is $23.00. What options do you have to compete?
Your first choice is to reduce your price; this is the most common reaction. The problem is that unless you can reduce your costs of supplying the product all you do is reduce your margins. And, you have to prepare for another potential round of price reductions if your competitor decides to further reduce their prices.
I am not a fan of competing on price. It can be easily copied by your competition and it generally eats into your profits. It is NOT a BE DiFFERENT approach.
Your second choice is to add value to more than fill the $3.25 price gap. This is the BE DiFFERENT Practice that will not only set you apart from your competitors but will also give you the opportunity to enhance your margins. In addition, it makes it more difficult for your competition to copy your move. VALUE differences are tough to copy; price is easy.