The rush to the lowest possible price benefits no company. You need to work to a business plan that gives you a fair return, allows you to invest and to improve. There are companies that are in it for the short term and these can eat into your profits. I'm telling you nothing new of course.
If a rival company suddenly slashes its prices to an unsupportable level there is a temptation to reduce yours to compete, despite knowing that yours is the sustainable one. This way lies disaster. There are alternative ways to compete.
In a future blog we'll cover user experience, which can be a great way to increase profits, but in this one we will deal with simple steps you can take when you are undercut.
If the other company's product is selling at a lower price there must be a reason, the most likely, if your pricing was precise, is that they have cut corners. You can, perhaps should, buy one of theirs and investigate. Find a weakness and you have found what to feature in your next email marketing campaign.
If, for instance, they use inferior materials, then highlight the quality of yours. Your email marketing list will show you which of your subscribers value quality and the feel of an item. If you provide transfers from the airport to hotel in cars, then tell them that others opt for vans with seats.
If you are selling a superior product then make sure you marketing email design looks superior. Balance it, have quality images and ensure your grammar is what they would expect.
Pander to conceit as well. Be exclusive, make a feature of your higher price; it worked with the iPhone.
Remember too that any purchaser will suffer some concern when considering the lowest priced item. Play on this. Tell them there are inferior products and warn them of the pitfalls. If you can't find their weaknesses then read their reviews, as intently as you do your own. If a number criticise longevity, then mention the better lifespan your product enjoys.
A race to the bottom is not the only option. Show your subscribers the benefits of what you sell.
