Formulating a way of competing with competitors’ prices doesn’t have to mean engaging in price wars or lowering your prices. Instead, it can be viewed as a fantastic opportunity to position your business apart from the competition.
Offer exceptional value and customer service
Customers expect appropriate value for the price they are paying. Moreover, they will often buy more expensive products if their customer experience was good.
Learn what your competitors offer, so you can outshine them. By reading their websites’ FAQ pages and customer reviews, you can often glean a lot of information, such as:
- How easy (or difficult) their checkout process is
- How quickly they respond and if there is 24 hour support
- What kind of refund policy they offer customers
- If there’s a money-back guarantee or free shipping on returns
Communicate what differentiates your brand
Don’t know? You can find out by learning more about the market segment you serve. Analyzing this data can show you where you stand compared to the competition.
And it will give you insight into what makes your brand different. When you focus on differentiation as a marketing tool for competing with competitors’ prices, it can, consequently, help your business stand out in the customer’s mind.
Increase sales using psychological pricing
The art of psychological pricing is based on gauging a target market’s emotional responses to an item. It works because the mind wants to assume it is saving money.
For example, which sounds better: $10 or $9.99?
Techniques can include anything from charm pricing (reducing cost by a penny) to prestige pricing (rounding up for luxury items) to differential pricing (two prices, the slightly higher one crossed out), and more.
Ultimately the best way of competing with competitors’ prices is to not only know your customers, but to consistently think and strategize outside of the box. As a result, sales will soar—despite the competition’s prices.
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