Portable Sanitation Association International

Sept 25 PDF

Issue link: http://psai.uberflip.com/i/1171504

Contents of this Issue


Page 1 of 15

W EEKLY EDITION SEPTEMBER 25, 2019 Pri ce W ar s: Tact ics for Competi ng Aga i nst a L ow - Co st Com pe ti to r (P art III o f a s er ies ) By Karleen Kos, PSAI Executive Director In the process, customers may also get accustomed to the artificially low prices and balk when they are raised later by the survivors of the war. This depresses profits over a long period. So, in choosing y our tactics, devote as much thinking to how to escape the price war as to how to win it. Here are some specific tactical suggestions you can consider in a price war. Not all of them will make sense for your situation. As the prior articles have suggested , you need to do your homework first. ( For the past two weeks we've looked at various aspects of price wars. See part I here and part II here. We've touched on how and why they start, local market considerations, and resources you may be able to use to bu ild an effective strategy. ) Option: Promise to match competitors' pricing. If you have the desire to hang onto market share and to signal to competitors that lowering their prices won't do any good, this can be a strong option. A price matching policy d oesn't necessarily guarantee that your company has the lowest price. It does, however, tell the customer that if they find a better price on the identical products and services prior to signing a contract with your company, you will match that price. Here are some things to think about with a price match policy: P AGE 2 CONTINUED ON PAGE 9

Articles in this issue

Links on this page

view archives of Portable Sanitation Association International - Sept 25 PDF