. . . but not impossible.
What do you do when a competitor offers pricing that is not sustainable? You know, the guy down the street who claims to be offering a similar product or service to yours, but since you are already running a lean operation and you know that if you offered a similar price you would be losing money you suspect your competitor is losing money, too. While it may be tempting to cut prices to match those of your competitor, if you will be at break even or losing money to do so, that’s a poor strategy. When faced with this situation, innovation, differentiation, and marketing are all important strategies to combat a competitor’s low-price focus.
My favorite commercial shows a small business using an innovative marketing message to neutralize a much larger competitor’s low-price business strategy. Check it out:
