Dear Friend,
When trying to out manoeuvre your competition – the easiest tactic to implement is lowering your prices to become more competitive in the eyes of your clients.
The problem with this is there will always be someone willing to go broke quicker than you are.
When a business doesn’t know how to compete on value – it will compete on price. Once you are competing on price you become a commodity and your only tactic left is to move great volumes of product to make any sort of serious profit.
Focus your marketing strategy on competing in the value sector of your market – don’t try and compete in the overly competitive price sector of the market.
There will be plenty of other business who are all to eager to drop their prices at all cost (because it’s all too easy to compete on price).
To get yourself in the right frame of mind to get started on this – ask yourself what you would need to do to raise your prices (yes RAISE your prices).
Make Your Marketing Work Harder,
James Hill
PS. It will take a bit of effort to figure this out – but their are fewer people competing in the value sector. Ultimately you will end up with a more profitable business.
PPS. There are value and price sectors in most markets – you would be one of the rare few business who could only compete on price (like a 2 dollar shop).