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Donna Genie warns that competing only on low price rarely works unless you're massive like Walmart or Costco. Price wars and being second-lowest are traps. Build loyalty through quality instead.
Donna Genie warns that competing only on low price rarely works unless you're massive like Walmart or Costco. Price wars and being second-lowest are traps. Build loyalty through quality instead.
Today I'm going to share with you the surprising consequences of being affordable. We all know that if you're looking for cheap, we all know the brands who price themselves into a model of offering affordable products. Walmart, Southwest Airlines, Costco. Now, I'm not saying those are bad places or good places, but we know their place. One thing you'll notice is that those are all big companies. Many times the low price leader has to be a giant company because they're the only ones who can negotiate pricing from their suppliers to match their pricing strategy in the market. Being second place at being the lowest price in your market means you've lost. You can dig a hole, but the only place is down to get to the lowest price if you get stuck in a war with a competitor. So I urge you to make sure that your strategy for marketing is not solely based on price. If it is, lock up, close the door, cash out the bank account, because you're done. You're actually out of business right now. Even if you might not know it. You want to build loyalty and you want to offer a great product or service. You don't want to just price yourself all the way to the bott.
