If you’ve been in business long enough, you may realize that from time to time you get drawn into price wars when your competitors suddenly lower the prices for their products.
At that point businesses in your space may choose to drop their prices in a race to have the lowest prices in the market. But does that really benefit anyone in the long term? More often than not, price wars end up badly for all businesses involved.
Here’s a better way to come out on top of a price way: strengthen your brand.
Work on Your Brand and Distinguish Your Business
This strategy works even if the byline on your business card touts your business as having the most competitive prices in the market. Having a solid brand requires going beyond such promises to establish your business as a trustworthy source of the product or service you provide.
In other words, instead of entering the race for getting customers to spend the least on your products and services, turn your attention towards building the trustworthiness of your business.
Start by focusing on values that set you apart and which competitors will find difficult to compete with you on. Examples include:
- Ramping up your customer service and making it a point to wow your customers at every point of the purchase process every single time.
- Improving product quality or service quality while maintaining your price in order to make it clear why your products are not the cheapest buy in the market.
- Flaunting your outrageous return policy or warranty service as compared to what is offered elsewhere in your market.
- Emphasizing the stellar quality and knowledge of your staff and making a point to hire only those that make the cut.
Throwing it down with your competitors benefits nobody—not even the consumer. Because, while your customers naturally appreciate and love paying low prices, they also want a good experience—one worth spending their hard-earned money on.
People are willing to pay the extra amount for the value your business brings to the table, and you will do well to take advantage of that to come out on top the next time you find your business being dragged into a price war.
There is another danger associated with giving in to the temptation of fighting to have to lowest prices in the market during a price war:
If all you focus on is pricing, in the end, you have to have the lowest prices to merit new customers. Pretty soon, having the lowest prices becomes the only value proposition for your business.
And that is an unenviable position for your business to be in.
Creating a strong brand requires many parts coming together both online and offline. If that is a lot to take in you may want to consider reaching out for outside help. We at Eternity have made it our sacred duty to ensure that business owners like you get the best ROI for their websites. We would be happy to hear from you to learn how we could be of help.