In the business world, we really can’t run away from the competition. There are many ways that a business person can do in order to attract as many consumers as possible. One that is quite commonly done is by conducting business competition through price.
It’s not strange if you see a lot of price competition going on in today’s business world. When one competitor lowers the price, it will provoke other competitors who will also lower the price.
It’s even cheaper than its competitors. This departs from the assumption that a competition can be won if the price issued or priced is cheaper than others. If this price war continues, it will have a bad impact on the development of a business.
Overcoming this price competition is certainly a form of challenge for a business person or business. For those of you who are business actors and are currently experiencing this situation, here we will provide a review of what are the best ways you can respond to price competition.
1. Your product innovation
The first way you can do is by innovating your product. This can be done to overcome the ongoing price war.
There are many innovations that you can give to your products. In providing this innovation, of course, you need to be a little more creative.
You can do product innovation by making the packaging more attractive or in today’s terms eye chat. You can also do other things, such as if your product is a food product, then what you can do is add a variety of flavors to your product.
Of course it will increasingly make consumers have many choices of the taste variants.
2. Maintain relationship with customers
One of the things that makes customers feel at home to continue to buy your product is the service you provide. This service is not only when customers make transactions with you, but you also need to maintain good relationships with customers outside of working hours.
A closer relationship with customers will certainly make them more loyal to you. Therefore, here there is a need to store a database of your customers.
If you have a website page for your business, then all you have to do is ask your customers to register on your website. When they register, they will automatically fill in personal data such as their date of birth, cellphone number and address.
If you already have these data, then you can grow their loyalty by maintaining your relationship with customers.
The way you can send light things like birthday wishes for customers’ birthdays.
To make it look more sincere, you can send them a small gift on their birthday or maybe during Eid. Ensure delivery of gifts directly to their home address.
3. Increase value
The third way that you can do to respond to price competition is to increase the value of your product or company.
You can increase this value, such as adding promos or bonuses, providing guarantees, fast delivery of goods and others.
By doing that, of course, you don’t need to lower the price of your product like other competitors who slam prices so that their products sell.
Sometimes some customers are willing to pay more to get the things in the form of value that have been mentioned above. Providing value will make customers seem to get something more than the price they have paid.
4. Create a new product
To create a new product, of course you need to do market research. You need to see what society needs today. After that you can create a product that is a solution to the needs of the community.
Creating a new product does not mean you have to change the type of business. You are here just a little creative with the products you produce. By creating this new product, you can maintain the health of your company’s cash flow.
This is of course to keep your company running and able to continue to be stable, even though there is a price war that could threaten the health of your business.
How to Choose the Right Location?
5. Choose the right location
Choosing a location to open a business is very important. If you choose a place where there is a lot of competition, then don’t be surprised if you find yourself in a lot of price wars.
Therefore you need to look for other potential locations where there are few competitors.
If you have already opened a business in one place, you can also open a branch in another area with fewer competitors.
If your line of business is done online, then all you need to do is create a special website page for your own online store.
Make a professional website so that your brand can look more convincing in the eyes of customers. Don’t just rely on the marketplace because there are so many competitors.
6. Do a SWOT analysis on your business
The next way is that you do a SWOT analysis on your business. By doing this analysis, of course, you will be able to find out what your product’s advantages, weaknesses, opportunities and threats are.
This analysis is very important because then you can find out the potential of your business, so it will be easier to develop and maximize strategies.
You can apply different and quite innovative marketing strategies, so you can avoid the price war that is happening.
Don’t be dragged into a price war because it will only become your master’s weapon in the end. Especially for businesses or businesses that are still small. Because it will only harm your business if it is done continuously and in the long term.
7. Give a suitable price
Indonesian society today has become a smart consumer. Automatically, these consumers are not only hunting for cheap prices, but also the quality offered by these products.
When someone slams the price of a product, it will only make consumers think that the product they are selling is not of high quality, so they dare to give a low price.
Therefore, here you need to provide a price that is in accordance with the quality of the goods you are selling.
You don’t need to lower the price to make your product sell well in the market. Like the points mentioned above, you just need to provide extra service to customers.
Those were 7 ways to overcome or respond to price competition that was happening. Do these 7 ways to keep your business afloat in market competition.