Short excerpt from a YouTube video advising businesses to avoid competing on price. The speaker warns that competing on price triggers customer shopping for the cheapest option, leads to a race to the bottom, shrinks margins, and is an unsustainable business strategy; instead they recommend providing greater value.
You want to be the option that provides the most value. Because when you compete on price, what happens is, is they take your price and they go shop that around to everybody else, and then they're just going to choose the cheapest price, which is a race to the bottom. And so it just puts you in this place where, like, you have to keep competing in price, competing in price, and lowering your price over time, which just puts you in a terrible position and it just crushes your margins, and it's just not a good business to run, trust me.
