Mon 25 Aug 2008
Tips for Competing in a Cost-Conscious Market
Due to intense competition and a down economy, businesses need to price their products very aggressively in order to win over the hearts - and wallets - of their customers.
While lowering prices is possible only to a certain extent, there are various other methods to attract new clients as well as earn a decent profit.
Here are some tips for competing successfully in a cost-conscious market.
- Emphasize Your Extraordinary Service. You will need to provide extraordinary service along with your products. But good service is only good if people know about it.
Thus, you should implement an advertising campaign that concentrates on your high level of service to impress your target audience.
Clients will not mind paying a little more if they are assured of better after-sales service.
- Build A Better Mousetrap. Instead of offering average products at rock bottom prices, try to offer your clients better quality products at slightly higher prices.
Once you convince your clients of your product's superior quality and longer life span, it will become quite easy to make a sale.
- Offer Guarantees. A guarantee will offer your clients peace of mind, especially in a tight economy.
Their trust level will increase if you can offer them products with extended guarantee periods.
- Offer Free Services. Instead of lowering prices, you could offer free shipping or free servicing within a particular time frame. If you do this, your clients will be reassured that you do not plan to bolt away after selling them the product.
Your response time to any inquiry, order or after-sales problem should be much faster than the rest of your industry if you want to stand out from the crowd.
By using the above tips, you can carve out a niche where price pressures will be much less; and your competitors will find it difficult to emulate your business' strategies.
Lowering your prices will only work in the short run - but by following these tips, you will stay financially healthy over time.