Poll: If a regular customer asked you to match a cheaper price from a competitor, you would

Results 1 to 10 of 10

Thread: Drop your price.

  1. #1
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12

    Drop your price.

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

  2. #2
    Platinum Member Marq's Avatar
    Join Date
    May 2006
    Posts
    1,297
    Thanks
    73
    Thanked 283 Times in 216 Posts
    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
    The cost of living hasn't affected its popularity.
    Sponsored By: http://www.honeycombhouse.com

  3. #3
    Diamond Member wynn's Avatar
    Join Date
    Oct 2006
    Location
    east london
    Posts
    3,338
    Thanks
    548
    Thanked 625 Times in 524 Posts
    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.
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
    You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
    http://www.smashwords.com/books/view/332256

  4. #4
    Moderator IanF's Avatar
    Join Date
    Dec 2007
    Location
    Jhb
    Posts
    2,679
    Thanks
    197
    Thanked 529 Times in 405 Posts
    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.
    Only stress when you can change the outcome!

  5. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by IanF View Post
    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.

  6. #6
    Diamond Member tec0's Avatar
    Join Date
    Jun 2009
    Location
    South Africa
    Posts
    4,624
    Thanks
    1,884
    Thanked 463 Times in 410 Posts
    Blog Entries
    3
    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”

  7. #7
    Silver Member
    Join Date
    May 2006
    Location
    Houston
    Posts
    361
    Thanks
    51
    Thanked 41 Times in 32 Posts
    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

  8. #8
    New Member
    Join Date
    Apr 2008
    Location
    Mossel Bay
    Posts
    3
    Thanks
    0
    Thanked 3 Times in 2 Posts
    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...
    Last edited by JohanvW; 09-Oct-09 at 01:20 PM. Reason: spelling

  9. Thank given for this post:

    Chatmaster (10-Oct-09), Dave A (10-Oct-09)

  10. #9
    Gold Member
    Join Date
    Jun 2006
    Posts
    561
    Thanks
    32
    Thanked 49 Times in 32 Posts
    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"
    Regards

    Debbie
    debbie@stafftraining.co.za

    From reception to management training, assertiveness, accountability or interviewing skills, we have a wide range of training workshops available for you!
    www.stafftraining.co.za

    Find us on
    Facebook

  11. #10
    Platinum Member Chatmaster's Avatar
    Join Date
    Aug 2006
    Location
    Cape Town
    Posts
    1,065
    Thanks
    107
    Thanked 99 Times in 63 Posts
    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.
    Roelof Vermeulen (Entrepreneurship in large organizations)
    Roelof Vermeulen| Rock flaps south africa

Similar Threads

  1. Retail / Wholesale Price - Please help!
    By Wolf in forum Marketing Forum
    Replies: 12
    Last Post: 10-Nov-10, 05:47 AM
  2. [Question] Gas Price
    By Faan in forum General Business Forum
    Replies: 1
    Last Post: 18-Jul-09, 05:00 PM
  3. Cost price notebooks for the World Cup!
    By RKS Computer Solutions in forum Technology Forum
    Replies: 48
    Last Post: 13-Oct-07, 04:18 AM
  4. Mr Price ordered to withdraw misleading ads
    By Eugene in forum Marketing Forum
    Replies: 7
    Last Post: 11-Aug-07, 04:20 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •