Pricing against others.
WHAT TO KNOW
What competitors charge What they include Who their customers are
WHAT NOT TO DO
Simply match them.
You do not know their costs, their volume or whether they are profitable.
WHY COMPETITOR PRICES MISLEAD
A larger business has lower unit costs A business with different overheads can charge differently Some competitors are losing money
WHAT TO COMPARE
Not just price. What is included, what quality, what service.
If you deliver faster, answer the phone, or provide better goods, that is worth something.
BEING THE CHEAPEST
A difficult position for a small business.
Someone with more volume can always go lower.
WHAT TO DO INSTEAD
Be clear about what you offer that they do not.
Then price for that.
WHEN TO MATCH PRICES
For genuinely identical commodity products where price is the only factor.
WHAT TO CHECK PERIODICALLY
Competitor pricing, so you know where you sit.
