How Business Owner can win price war with competitors without giving extra discounts?

🕐3 minutes to read

In current after-pandemic market conditions when everyone tries to win a customer, price wars are becoming increasingly common and uncommonly brutal. Price wars can create economically devastating and psychologically debilitating situations that cause an extraordinary loss on an individual, a company, and industry profitability.

Let’s start from the beginning, with the question: what is a price war? A price war occurs when competing companies continuously lower their prices to undercut the competition. A price war may be used to increase short-term revenue, or it might be used as a long-term strategy to help a company gain market share. Either way, this conflict usually ends up with all companies engaged in a price-cutting game with no winners.

The Effect of Lowering Prices

Other companies become agitated when a competitor offers a product at a price that is lower than their sales price. The other company decides to slash its prices because they want to stay competitive. This allows customers to take advantage of purchasing products at deeply discounted prices. Instead of developing their branding, or establishing a relationship with these customers, both of these companies have encouraged their buyers to flock to the seller with the lowest prices for their future purchases.

5 Strategies to Win Price Wars and to increase your sales

There are several strategies that can be employed by business owners and sales reps to avoid a price war. These strategies include:

✅ evaluating competitors

✅ price matching

✅ adding value to the product/service without lowering the price

✅ creative marketing

✅ focus on your brand

“To win a price war, you must be strategic in your firing power. Creative marketing and advertising will help win price wars all day long.” —Nicole Mathews, owner, Chicks Inc.

Is your company is a price war with your competitors? How do you fight it?

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