What To Do About Competition Undercutting Your Prices

Are you concerned about the competition undercutting your prices?  If you are like most business to business firms, price is one of the key objections you face when sales people present your offer.  It seems that no matter what you charge, there is always someone willing to do it for less.

Even worse, your customers are willing to switch to the low cost provider without doing due diligence.  What usually happens?  Low cost providers don't always do a good job, and you may have to come in behind them to fix their mess.  Customers end up paying twice.

If you lower prices to match "street" pricing, then your cut your margin so deep it's difficult to operate.  Instead of operating at a loss, whining about pricing, or sacrificing quality ...

What can you do about the competition undercutting your prices?  Charge twice as much!  In todays competitive world of business to business technical services, you can't stay in business being the lowest price provider -- so why not be the highest priced!

Now I hear you saying, "That won't work in my business!"  But, that's probably because you aren't giving your buyer enough reasons that your price is justified.

Give your customers at least 25 reasons why not only your higher prices are justified, but why if they go with someone else they will actually lose money instead of saving it.  Increase your value, at least make the value you provide obvious and not only will you increase profits, but you'll find most markets can support a high price provider.

Of course, you better be doing a good job at what you do.  If you deliver a quality product in a timely manner, then this "raise your price" strategy will keep your business strong.  But, if you insist on shabby service and a less than par product, then you deserve to go out of business.