A competitor is selling cheaper
Matching the price feels safe. Often it is the fastest way to lose money.
When the shop next door cuts prices, matching them is the first instinct. But you don't know their costs, their supplier terms or why they are cutting.
Before you react
- Check what their price includes. Delivery, warranty or quality may differ.
- Check whether it is a short clearance or a permanent price.
- Calculate your margin at their price. If it is below your break-even, matching is not an option.
What to do instead
Compete on what you include: faster delivery, credit to trusted customers, better advice, a cleaner shop. Write one sentence on why a customer should pay your price, and make sure your staff can say it.
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