4 Tips to compete on price in your business
In a competition to sell more and get more customers, many a times brands compromise on pricing. They sell more for less.
To help marketers come out of this technique, Econsultancy writer Min-Jee Hwang has shared four tips in her recent article.
Hwang says, “Pricing does not occur in a vacuum, so instead of avoiding price competition, the best harm reduction plan is to safeguard margins.
There will always be another retailer willing to do away with profit temporarily to beat you. Don’t underestimate the sneaky tactics of your competitors. When you cut prices, know that your competitors will never be too far behind. How can retailers discount, while still keeping margins top of mind?
1. Find your pricing power
Getting the lay of the land is crucial in retail. On certain brands and categories, you have pricing power, meaning you can raise prices (and profit margins) and still remain competitive. On the other hand, commodity and in-common items will have to be priced more competitively. Learning which products fit into which category and acting accordingly is the only way to compete on price without throwing margins into the wind”.
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