Question: What is one tip for dealing with competitors that are intentionally undercutting you on price?
"Find areas where you compete favorably and put up a comparison chart on your website. Be explicit -- assume that your customers know about your competitors."
Provide Value and Customer Service
"When prices can’t be lowered, focus on the ways you’re ahead of your competitors in terms of quality. Clients care about price, but they care more about the quality of what they’re getting for their money. Customer service is also a key point. This, in many cases, is more important, and clients are willing to pay higher prices to have a partner, not a just a hired gun, working for them."
Raise Your Prices
"As our market becomes more competitive, we increased prices to help us tell the story of how we are different. When our prices were lower, it was harder to tell a compelling story. As the difference in price points became greater, we had the opportunity to tell a better story and we did. Our prices have increased as more and more low-cost competitors jump into the market."
Stress Your Core Differentiator
"In these situations, companies have to clearly communicate what differentiates them. Apple did not panic and reduce all their prices as smartphone companies undercut them on price, because they differentiated themselves. When we think of Apple, we all think of high quality products and great innovation."
Stay Firm on Prices and Offer More Free Content
"Engaging in a price war only harms your niche in the long term because it drives down profit margins for everybody. Stay firm on your prices and focus on adding value by creating more free content on your website and on social. Make help videos, write lots of great guest blog posts and share on social. Consumers will increasingly see you as a trusted authority which will justify your prices."
Separate Yourself as the Premium Offer
"If you cannot lower your prices to compete, then separate yourself as the premium offer in the market. Invest in your branding and customer service to make it stick. If the market allows, then you may end up with the higher-end clients and higher margins than your competitor."
Uphold the Value of Your Brand
"If you focus on price alone, you’ll never win the war. Focus on the value your product will bring your customers and why your product is what they need to become more profitable. This is worth far more than shaving off a few dollars for the initial investment. Remain true to the pricing structure you’ve set in place and uphold the real value of your brand!"