When you’re faced with business competitors who are willing to bump off their product prices, it’s not always a sound decision to try to beat them at their game. Lowering your prices can be disastrous for your business because there’s no guarantee that you’ll win customers, especially if it hurts the quality of your products. There are far better ways to compete against low-costing rivals.
Provide better value
Instead of lowering your prices, what you can do to win customers over to your side is to provide them with better value in your products. Sure, customers want products that are cheap, but everyone prefers items that are of great quality. So, make sure that your products are good and that your target market knows that.
Start by focusing your ads on the high quality of your brand. Then, produce more content for your customers. Increase your efforts in producing articles for your blog site about your brand. You can have other bloggers or influencers share their experiences with your products, too, to increase customer engagement.
Raise your price
This may sound counterintuitive, but it actually makes sense when your competitors lower their prices. When you raise your product prices, you’re sending a message to your customers that you’re adding more value to your items.
However, for this strategy to be effective, you need to launch an ad or PR campaign telling the story behind your raised price tags. You need to tell your customers that even though the market has become more competitive, your company isn’t willing to sacrifice the quality of your products just to get more buyers.
This way, you’ll make your customers feel that giving them premium value is your brand’s priority and that you’re not out there only to make sales. This will likely entice your target market even more to patronize your brand and products.
Just make sure that your vendors and distributors comply with the minimum advertised pricing (MAP) policy that you set.
Advertise your business as a premium brand
Another way is to make your customers understand why your products have heftier price tags. Emphasize how your business spends more money on your products to ensure that everything is of premium quality. This way, you’ll be able to justify your prices.
Take, for example, Mercedes Benz. This car manufacturer spent years building the brand’s reputation for luxury and elegance. When they succeeded in building their brand’s value, their customers realized and agreed that it’s only fair that Mercedes Benz cars are expensive. On top of that, their customers themselves want to be viewed as people with an elegant taste. So in the end, Mercedes Benz was able to justify why their price tags are a lot higher than those of other car manufacturers.
So, even if some of your competitors are reducing their prices to capture more customers, you don’t need to beat them at this kind of game. Lowering your own product prices is risky and the rewards may not be as huge as you think. Instead, beat your business rivals by figuring out other angles of attack.
