Everyone likes a good deal.
With unstable global markets, customers are buying with caution. Which is totally understandable.
So, consumers start waiting for their favorite brands to reduce prices. And they purchase the cheapest available product.
But in a highly competitive marketplace, store owners can’t rely on pricing to differentiate them from their competitors. It will halt growth, and monthly recurring revenue will shrink.
“If you compete on price someone will always be willing to go lower and at the same time you are ruining your chances of being able to grow your business. With tiny margins there won’t be any cash left for things like hiring, marketing or buying more equipment,” states Matt Remuzzi, owner of CapForge Bookkeeping. …show more content…
Show customers how your brand is offering more than just a product.
Let’s explore how to compete beyond price.
The Fallacy of Competitive Pricing
Businesses strive to better than the competition. From expanding your inventory selection to offering unique services, you want buyers to choose your brand.
But there’s one problem. Your team now wants to compete based on price.
Because if your ecommerce store is less expensive than everyone else, customers will choose your product automatically. And that’s not always the …show more content…
The consumer may think: What’s missing from this service? What’s the hidden costs?
“Your brand identity as ‘the cheapest seller’ is constantly under suspicion – because a competitor can always undercut you at any time. Bargain hunters are only loyal to price – and their constant demand for lower prices threatens your profits just as consistently,” states Aaron Traywick, COO at Global Healthspan Policy Institute.
Understand that your competitor’s prices will flunctuant. And your business shouldn’t depend on how someone runs their operations. Pricing strategies should focus on your store’s ability to meet profitability goals.
For example, below is a month-to-month chart showing price changes for major retailers. You can spend an unreasonable amount of time trying to keep up.
IMAGE VIA THE DAILY EGG
Moreover, lowering your prices affects all parties involved. Customers receive lower quality services. And businesses struggle to gain a decent profit by selling to the masses.
Competing based on pricing is a loser’s game. Stay in the winner’s circle by focusing on value.
Understanding the Customer
Today’s consumer has access to a lot more information than previous
With unstable global markets, customers are buying with caution. Which is totally understandable.
So, consumers start waiting for their favorite brands to reduce prices. And they purchase the cheapest available product.
But in a highly competitive marketplace, store owners can’t rely on pricing to differentiate them from their competitors. It will halt growth, and monthly recurring revenue will shrink.
“If you compete on price someone will always be willing to go lower and at the same time you are ruining your chances of being able to grow your business. With tiny margins there won’t be any cash left for things like hiring, marketing or buying more equipment,” states Matt Remuzzi, owner of CapForge Bookkeeping. …show more content…
Show customers how your brand is offering more than just a product.
Let’s explore how to compete beyond price.
The Fallacy of Competitive Pricing
Businesses strive to better than the competition. From expanding your inventory selection to offering unique services, you want buyers to choose your brand.
But there’s one problem. Your team now wants to compete based on price.
Because if your ecommerce store is less expensive than everyone else, customers will choose your product automatically. And that’s not always the …show more content…
The consumer may think: What’s missing from this service? What’s the hidden costs?
“Your brand identity as ‘the cheapest seller’ is constantly under suspicion – because a competitor can always undercut you at any time. Bargain hunters are only loyal to price – and their constant demand for lower prices threatens your profits just as consistently,” states Aaron Traywick, COO at Global Healthspan Policy Institute.
Understand that your competitor’s prices will flunctuant. And your business shouldn’t depend on how someone runs their operations. Pricing strategies should focus on your store’s ability to meet profitability goals.
For example, below is a month-to-month chart showing price changes for major retailers. You can spend an unreasonable amount of time trying to keep up.
IMAGE VIA THE DAILY EGG
Moreover, lowering your prices affects all parties involved. Customers receive lower quality services. And businesses struggle to gain a decent profit by selling to the masses.
Competing based on pricing is a loser’s game. Stay in the winner’s circle by focusing on value.
Understanding the Customer
Today’s consumer has access to a lot more information than previous