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 Executive Director
On the other hand, sometimes suppliers can help companies succ essfully battle price competition by enhancing a
company's value. For example, a computer with the sticker "Intel Inside" was perceived for years as a better
machine than those with some other processor. In the portable sanitation industry, certain product s (e.g., longer -
lasting or more pleasant deodorizers, units of a certain style or color that is pleasing to the customer, large toilet
paper rolls) may indirectly support higher prices by delivering perceived added value. There's always someone
willing to pay $50 for four more inches of legroom on a plane or $10 more for underbody rust inhibitor at the car
wash. In the same way, smaller companies can leverage their deodorizer, paper, and service choices as value -
adds in many cases.
In summary, wise busines s leaders must thoughtfully consider the interests and motivations of all the players in a
potential price war: the competitor(s), the customers, and the other entities with a dog in the fight such as
suppliers, regulators, disposal sites, and so on. This knowledge, and your estimation of how these entities will
play their cards, is essential before starting or joining a price war.
Next week Part II: So You're in a Price War – Now What? - KK
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