Price Wars are Dangerous
Jan.07, 2009 in
Captains Picks
I saw this while driving today and couldn’t help but start thinking about how destructive it can be to create a product that is often bought soley on price.
If you compete on price you better come ready to play, because the big boys will and it’s a lot easier for Wal-Mart to offer a lower price than you if that’s what it comes down to.
However, if you are offering value, service, expedience, or some other quality that your customer values more highly than price (and believe me, these qualities exist and are used effectively every day) then you can compete with anyone in the world, regardless of size.
January 7th, 2009 at 8:17 pm
One cent lower? Granted people usually buy 10 gallons or more at a time, but with gas prices as they are these days, is saving 10, 15, 25 cents even worth crossing traffic for any more? One cent per gallon is less than one percent – not a whole lot of incentive there.
But your point is that price isn’t the only thing people use to determine where to buy products and services, and that’s very valid.
January 7th, 2009 at 8:21 pm
What happens when Chevron puts up the same banner? *giggle*
January 7th, 2009 at 8:44 pm
The Chevron across the street had one of those digital price displays. I bet the shell employees got pretty riled up when everytime they walked out and reached way up high to change the price, someone in chevron would just push a button, lol.
January 7th, 2009 at 9:41 pm
That is true. And lots of people don’t buy on price, but service. Best to choose something that you can sell on your personality and service. No way for the little guy to win on price.
January 8th, 2009 at 1:17 pm
Hi,
I don’t mind paying a little more when the service is way better than the other guy.
March 15th, 2009 at 10:30 pm
I think that the businesses with a good customer service, over-delivering value services and quality products will survive no matter what. Price games are the matter of the past…