How To Win The Price War

Most businesses are choked in “pricing war,” meaning that they have to charge what their  competitors are charging or no business. When pricing is the same, a business  owner’s  success can come only from cutting the price.  Unless you have such  a presence in  the  market that you are by far the dominant, you can’t beat everybody around you. You can’t  compete on price forever because someone else will eventually do it better, faster, or cheaper.

One good way out of these kind of predicament is to change the game you’re  playing by  making your offer so different from everyone else’s that clients only want to buy from you. Assuming you sell a product that every one sells at the same price, using numbers say; #500 profit, instead of lowering price you can take say about #200 and buy some additional product that will go with that product and add value to it. For example if you sell digital camera, you can add camera pouch and battery. Or if you sell phones you can add phone jacket, screen protector, memory card(if not included) or extra battery for phones whose battery needs constant charging.

Now you can package these high perceived-value items with the original product “no cost”  bonus items.

Now you've changed the game.  You’re no longer in their league selling a commodity. But here you are selling a package full of valuable additions that no one else has thought of. Anyone in their right mind would buy from you over the competition, all other factors being equal.

When it comes to helping your business out of overhead cost it’s all about  controlling  your  cash flow so that the right amount is coming in and out each time, plugging up  the leaks  and  taking a long hard look at your ROI. Once you have mastered your  cash flow  can the  real  fun begin.

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