Price Wars Case Study

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How do you win a price war against your competitors? Get out of it!

A price war is merely a race to the bottom. It will destroy your sales strategy and brand reputation. When your company entertains bids for drastically low prices, you cheapen the value of your products and services.

Patrick Reinmoeller, a professor of strategic management at Cranfield School of Management, says that “companies that initiate price wars engage in self-destructive behavior, which leads to downward pricing spirals that alter industry structures.”

Aggressively setting prices below standards eventually hurts everyone in the game. So, leave this nonsense to your competitors.

Instead of getting an edge on price, drown the competition by offering prospects great
Make Price A Triviality
It’s the 11th hour of negotiations. Everything seems to be heading towards closing the deal. Then, the prospect mentions a ridiculously low price offered by your direct competitor. You hear that dreaded question: Can you do better?

Let the prospect imagine the value of your product without price involved. Close.io CEO and Co-founder Steli Efti suggests asking the potential customer the following questions:
With price aside, do you like our product better?
Is our product more valuable to you?

In an ideal situation, the answer will be yes, and you won’t have to worry too much. The person understands the value of your product, and you can proceed to finish the sale.

However, if the answer is no, tell the prospect go with the competitor. Umm, yes. Let the them go!

Ramit Sethi, a personal finance advisor and entrepreneur, believes that “the best people want the best material. And when you’re ready for the best, price is a mere triviality.”

For example, Sethi charges $2,000+ for his online business training courses because the best focus on value and not cost.

You don’t want folks to buy your product if it’s not the best solution. And you don’t want them to buy your product if it’s just based on the lowest

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