Drop your price.

[Dave A]

If a regular customer asks you to match a cheaper price from a competitor, would you drop your price?

[Marq]

For me, this is a depends scenario.

1. It depends on your overall policy to pricing......but
2. It depends on how badly you may want that customer for future business......or
3. It depends on how badly your sales look for the month and you need to cover your margins....which leads to
4. It depends if you are asking to go below margins.....in which case - go to step one

[wynn]

Match the price with reservations.
Is the opposition getting a better cost?
Is he offering the same product or something cheaper?
Is he in a deeper hole than you?
Is he saving on transport or other charges?

or for any other reason? find out so that your margins remain the same.

[IanF]

Dave
I can normally lower the price by using cheaper materials or manufacturing methods. It works like this which 2 of the 3 do you want
Price
Quality
or Speed.
One thing is that you should never sell below cost as it is hard to raise prices later.
I always say I sell on service and price is secondary.

[Dave A]

it is hard to raise prices later.

I see that as the biggest snag in this. This might not just cost you some bottom line on this deal - it could come back to haunt you for years to come.

[tec0]

To me it comes down to “who is selling it cheaper�

If it is company “A� and there service stinks. I say: “Good luck with your purchase then�

If it is company “B� and there service is ok. I say: “Sorry, but my cost doesn’t allow it�

[Yvonne]

Seth Godin's blog.]
Sell like you buy
Here are the two most common pleas I hear from marketers,
"Our product is as remarkable as we can make it, and we're trying really hard and it's very important to us that people buy it, but despite our hard work, it's not selling!" (Hint: calling it a purple cow doesn't make it one).
and
"Our business is built around the status quo, and it's not fair that the market wants something else now."
In both cases, the marketing pitch is focused around the seller, not the buyer. You wouldn't (and don't) buy from someone who says you ought to choose them even though there's a cooler, more remarkable, cheaper, better product. You don't seek out or talk about status quo brands merely because the marketer is trying really hard.
If it's not good enough for you as a consumer, why should it be good enough for you as a marketer?

I took the time to consider how this relates to our own business and the differences in the perceived value of what we offer! Perhaps this is one of those eternal questions we need to constantly ask of ourselves?

Yvonne

[JohanvW]

Pricing in my opinion is the most difficult task to balance in business. If the customer find you could sell at the lower price, he/she may think that u ripped them off previously? U may then end up in losing the valued customer. This is where service comes in! But yes, i would try and negotiate...
Reminds me of the Barber that had his shop for many years. One morning his assistant pointed out a commotion across the road and he sent him over to take a look. The assistant returned and said "Sir! Another Barber shop opended there and they only charge R 5 a cut!" (They were charging R 7)
The next few days saw them hardly cutting a head and the assistand said "what are we going to do?" The Barber asked him if he had any suggestions and he answered "Why that's easy! We'll just cut his price and start charging R 4!" The Barber asked him if he would then consider a lower wage ect and the assistant naturally declined and said "what in the world will we do?" The Barber said he'll think of something...
The next morning the Barber told the assistant to put up the following banner outside which read..."We fix R 5 haircuts for ONLY R 9!"...
Makes u think hey...

[Debbiedle]

I like the barber story. It's not clever business to get into price wars. If the client asks me to match the price, I generally respond with "as long as I don't have to compromise on quality anything is possible, so let's meet"

[Chatmaster]

I personally stick to my price, but if I can benefit from a bartering agreement that would be an option that I would consider. This is often overlooked by competition, but then again, the majority of my customers are businesses. I am currently doing consultancy in exchange for a week holiday for me and my wife in the Drakensberg

Lowering my price seems truly stupid. I am targeting the higher end clients and are regarded as expensive by my piers. My workshops, seminars, consultancy and other services cost more than most of my competition, but that is the way it works if you deliver. But the results I give customers always give a great ROI. I know for a fact that very few of my competitors can say the same. Ironically my customers seems to be attracted by my higher costs, as it is associated with better service.

In terms of service I always ask myself why people are cheaper and start doubting the value I will get. In the case of products it is the complete opposite. If you can make a profit sell it, but make it special with an added benefit or freebie, do not unnecessarily lower your price, just make it more attractive, I would suggest, people remember the special things, therefore you will be remembered.