Will you lower your price for competition?

by Adie
14 replies
For example I am offering a graphics design service for a standard price of $90 per page. A competitor offers $80 having the same quality. A customer asked me to lower my price after discovering the competitor's price. Will you lower your price in order to retain the customer?
If not, what you are going to do?
#competition #lower #price
  • Profile picture of the author tpw
    Depends on if it is a long-time customer or someone that darkened my door for the first time.

    If the long-term customer, I might consider it. If it is someone just poking their head thru my door, the answer would be an absolute no.

    Here is the thing, while the competitor might seem to offer a similar service at comparable quality at a lower price, there are other things that I might do that add extra value to my offer than what my competitor is giving.

    Any time that you start to try to compete on price, you will lose.

    Instead, you should always compete on value -- what you bring to the transaction that someone else might not bring.
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  • Profile picture of the author writeaway
    The best approach would be to offer high quality while lowering prices. Lower prices are possible through better production and quality control systems. Consistency regarding service types helps a lot too.
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  • Profile picture of the author WVMike
    NO! I would NOT lower the price. I would tell him that I'm worth a lot more than that extra $10 but if he doesn't believe it he can go elsewhere. The design is dependent on the designer. Do not get in a bidding war. If you start losing a lot of business than you are obviously overpriced but for ONE client, I'd tell him that higher quality and service costs more. If he can't appreciate that, then you don't want him as a client!
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    • Profile picture of the author Dash Evra
      Originally Posted by WVMike View Post

      NO! I would NOT lower the price. I would tell him that I'm worth a lot more than that extra $10 but if he doesn't believe it he can go elsewhere. The design is dependent on the designer. Do not get in a bidding war. If you start losing a lot of business than you are obviously overpriced but for ONE client, I'd tell him that higher quality and service costs more. If he can't appreciate that, then you don't want him as a client!
      Hate to break it to you but your product is worth whatever the market is willing to pay for it. Not your personal opinion of what you think you are worth.

      If lowering price would increase profit in the long run, I would definitely do it.
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  • Profile picture of the author Moneymaker2012
    Hi,
    For me i will low the price if my client ordering a big order and ask for discount in my budget than i will give him discount because if i say no to him then i'll lose all my my money."Some thing is better than nothing"
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  • Profile picture of the author bizgrower
    In the example given - unless I really needed the $80 or $90- I'd risk
    losing that customer and not drop my price. If $10 means that much to that
    customer, then you probably don't want them long term. And, you want to
    build your business with desirable, paying customers. Pricing is screening.

    You might offer something additional that does not cost you much to do.
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  • Profile picture of the author hustlinsmoke
    Would depend. I like to give more than just the product, I want to give the customer more. You say they have the same quality. So you both are equal in graphic design, Really?

    Do you give better customer service, do you have any perks like mods till complete satisfaction, do you have service after the sale. Lets say my printer can't work with your design are you going to fix it.

    I probably would not drop my price because I am so high customer service.

    I used to install scripts on ebay before there was even an ad for it. I charged 25 bucks, your lucky to get five now, anyways a new guy popped up and one of my customers asked me to do it for his price and I said I couldn't do that.

    The guy never did get it installed right and the customer came back asking me to fix it.
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  • Profile picture of the author Leon Zykos
    Hi,

    Personaly I would try to justify why I am price higher than the competitor and find a loophole in terms of service quality that the competitor is not offering. Generally, there is always something lacking in your competitor that is not quite on par with you. For example, the deliverability of the service, the duration waiting time you can give your customer, the after purchase customer service when your customer encounters any problems are areas in which you can show you are superior.

    Hope that helps.
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  • Profile picture of the author Joan Altz
    If a client tried to nickle and dime me or do comparison shots, I'd get rid of him asap...unless I was desperate for the business of course. Those type of clients are usually the least rewarding and most demanding. Don't need them. Don't want them.
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  • Profile picture of the author Adie
    I just did lower my price but only half of what he was asking. He's a long-term customer but $10 is a big amount to cut. It's a good thing that we came into an agreement.
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  • Profile picture of the author Resource9
    If you are a startup, it is better to start with lower prices. This is one of the best ways to attract people and get more customers.
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  • Profile picture of the author Geoff101
    Well I won't so it for new customer but I would consider it if a long term clients asks for it.

    I would also like to the emphasize to the client the value I deliver that my competition does not even though they charge less.
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