Portable Sanitation Association International

Sept 11 PDF

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W EEKLY EDITION SEPTEMBER 11, 2019 Pri ce W ar s: Don't be Tak en Pri soner Par t I By Karleen Kos, PSAI Execu tive Director Portable sanitation is not the only industry where competing on price to the detriment of all occurs. Business Insider reported last year that Wal - Mart was matching Amazon on at least 53% of its online offerings, Target is matching 37% of Amazon's prices, and Jet.com is matching 35%. Even so, Amazon is still the cost leader overall, with prices that are around 10% lower than their closest competitors overall. If anything, the pricing wars in retail have only gotten fiercer in 2019. We are not alone. What's the po int of a pr ice war? That is, indeed, the million - dollar question. At the outset, the idea is usually to create price appeal, to offer a no - f rills alternative, or – sometimes – to temporarily take a loss by underselling a weaker competitor until that competitor exits the market. Irritating though such tactics are, they are almost always legal. The problem is that competitive price slashing, ove r the longer term, de - values the services our industry provides and leads to an overall decline in industry profits. In spite of this most company leaders will be involved in a price war at some point in their careers. Every time a competitor cuts their prices could be the beginning of a price war, especially if you respond in certain ways. If their pricing decline causes you to automatically make similar cuts or offer new discounts, things could easily escalate into a major price war rather quickly. P AGE 2 CONTINUED ON PAGE 8 118 Industrial Dr. Kennedale, TX 76060 www.cpacex.com Serving the Portable Sanitation Worldwide ODOR CONTROL • DEODORIZING • CLEANING SOLUTIONS 800- 974 -7383, ext. 115 Direct 419-450-6208 email: llb@cpacex.com

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