It’s never a good idea to simply change prices or lower them immediately. Doing this may lose customers or even worse, it might destroy your business. Going into a price war is never easy and is never won. There will be consequences include:
- Dropping your price rates might be hard to raise once lowered.
- You will only attract customers that have interest in cheap rates
- You will be at risk of being seen as a ‘cheat’ or a ‘copy’; titles say that you are only following the competition.
A better way to beat your competition is to study them. You need to discover their strengths, their weaknesses and your strengths and weaknesses. This gives you an opportunity to changes the way you plan, think and grow your business. You will have to plan a profitable way to stay successful.
If the competitor in question continues to sell the same products, this is your chance to consider new things, ideas. This is the time to show how unique you are to your customers. Show them you’re not just any small business. Show them that you’re a business that is strong and passionate, something they’ve maybe never seen in your industry before.
When dealing with a big competitor don’t try to go into areas you know you can go but the competitor can too. They have more resources than you do. Try to look at the things you can do more easily, consider that your company is smaller so it adapts easier. Remember, as a small business you can provide that personal touch to customers.
Sometimes along your path to success you drop down a bit, customers start to leave you. Now, you have to think about what you’re going to do to help make your business thrive again. Take a look back at your business plan. Look for flaws and mistakes and figure out a solution. There must be a reason your customers are leaving you.
You can also try to be more cooperative directly with your competitors. If your businesses could be friendlier with each other it can benefit both of you. You could possibly gain access to higher levels of product offerings and attract more customers. Competition only makes it harder for both businesses to thrive, think about how you can get on the road to success without worrying about competition, with less difficulty, without suffering. Show your consumers yours is a business that doesn’t get rattled by competition and instead focuses on cooperation, both with your customers and your competition.