Posted by Nathalia Lopes on 05 Abril, 2022
How can I compete with my competitor who charges cheaper than me? Every service provider has asked themselves that question. What they don’t know is that it’s more common than you think.
After all, the competition for the market is getting tougher every day, and many end up falling into the temptation to offer the lowest price, just not to "lose" the customer.
Have you done that too?
So be aware that this is not the only solution to this challenge. In this article, we will address the best ways to compete with the competition, without needing to charge more cheaply.
Curious? Then continue reading!
Who charges more cheaply?
Answer quickly: the company that sells the cheapest, is the one that sells the most?
Usually, the answer is no. Just look at the largest service company in their segment, and assess whether, in fact, what they deliver is the cheapest service.
Why isn’t price war the best strategy?
First of all, you need to understand that a customer who cares only about the price will not always hire you. After all, once he finds someone who charges cheaper, he’ll probably leave his company.
In addition, you may end up hurting your company’s finances if you keep trying to match your price to the competitor’s. After all, every business has a specific cost, and you don’t know what the competitor does that makes it possible to have the lowest price.
For example, if you work with a certain type of equipment that speeds up service, it makes no sense to lower the price without taking into account the costs you had or own to maintain it.
Another important point, is you evaluate the image you want to pass on to your customers. After all, if you always offer discounts or live making promotions, people will be waiting for you to lower the price before hiring your services. And so you create a vicious circle.
But don’t worry! Let’s give you some tips on how you can be more competitive without having to appeal to the lowest price.
Follow the next topics.
How do you compete with the cheapest snake?
Before you start talking about how to win from competitors without lowering the price, stop to reflect on the following points:
What do you do when a customer says they found someone who charges cheaper?
How do you react when you find out a competitor has covered your offer?
In these cases, instead of running to lower the price or give up the sale, stop to analyze what your company offers as a differential or find some attribute in which you can stand out.
Here are some tips that can help you change your behavior:
1st Know your differentials well
Understanding what your company offers differently will help you beat those who charge the cheapest. In addition, your customer needs to know the added value to your service, and what justifies the price you are charging.
For example, a personalized service, or a guaranteed service, in which your customer can rely on its durability.
Explain to your client that old saying, where "the cheap is expensive" when you hire a service of poor quality, and that often requires the purchase of more parts, or even a new performance of the service more often.
2nd Make a competition analysis
In addition to being important in finding your marked differential, getting to know your competitor well can help you identify his strengths and weaknesses.
That way, you can understand why his price is higher or lower than yours. And also, you can find out what their customers comment on social networks about the quality of service, service, delivery and the like.
But be careful now!
When analyzing, do not compare yourself to the larger companies, or try to copy the strategies of other companies. After all, everyone knows their particularities, and the ideal is that you discover how to differentiate yourself among the options that the market already has.
3º Know your audience well
Another important point is to know your audience well, not only to understand your preferences when selling, but also to create a lasting relationship and attract a similar audience.
After all, consumers prefer companies that care about their needs and care about after-sales success. So talk to your audience, find out why they preferred your services, and make sure they can come back and point you out to other people.
4th Learn new trading techniques
Perhaps, the way you try to convince your client to hire your service needs to be perfected. After all, there are some tricks you can use to convince at the time of negotiation that your price matches a good service.
For example, suppose a customer came to your store to make a budget. And in the end, it says it will do another research in other companies. At this point, you ask: do you really want to spend fuel and time researching elsewhere, and I can serve you the way you need?
At this time, you will plant a possibility in the client’s mind, in which he will be able to see one more convenience when hiring you. Trust me, audiences tend to decide faster when they realize they’ll have more work looking for a lower price.
Another way to negotiate is by taking some benefits whenever the customer asks you for a discount. For example, if he insists on paying cheaper, you can say you agree, but if you have a longer deadline to deliver.
So he will feel that you are willing to serve him, but that the more he tries to take away the price, the more he loses in quality.
Source: https://equipeprodutiva.me/2021/10/28/como-competir-com-a-concorrencia-que-cobra-mais-barato/