What to do when your competitor starts cutting prices

What to do when your competitor starts cutting prices

What to do when your competitor starts cutting pricesIf you've visited any industry networking page recently, you'll have seen complaints about suppliers selling direct, and distributors losing customers on price to a competitor.

Is there anything you can do to stop the rot?

Don't be tempted to sell on price!

Unless you have the buying power of Staples or 4imprint, you won't win this battle. There are some areas in which you can absolutely compete, and win, against the biggest names in the industry, and it's your job to make sure that your customers are fully aware of them.

Start by discovering what makes you unique.

There will be something that makes you the ideal provider for a particular group of customers. It could be your background in marketing, allowing you to pitch a combined promotional product, print and digital campaign idea to your client.

It could be your success in delivering effective safety programs. Or the amount of happy clients you have in the hospitality industry. Or even just the fact that you're local, and accessible, and you care.

Your unique selling point(s) should be on the home page of your website, and on the About Us page - it's very important to personalize these aspects of your website.

Reviews are very important.

When you've made a client super happy, hopefully they'll reach out and tell you! And if they do, create a testimonials section of your website, and add in their kind words (with their permission).

Make sure that these testimonials are easy to locate on your website. Consider adding a selection of them to your product pages, so that when someone's considering pushing the 'Add to Cart' button, they can see that you deliver on your promises.

Customer retention is more important than acquisition!

According to Gartner Group, 80% of your company’s future revenue will come from just 20% of your existing customers*. Use a CRM system like Customer Focus Ultimate to record your client's interests, significant dates (like their staff appreciation party or important exhibition) and previous inquiries and orders.

Armed with this information you can anticipate your customers' needs before they've even thought about shopping around for their suppliers.

Source: Forbes Article - Five Customer Retention Tips for Entrepreneurs

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