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Obviously not!
A product or service, which is superior to the brand-leader by, say30% because of its features/quality; can be priced at a premium of10% over the brand-leader.
No, low prises is not the single factor for beating competition in the market.
price will always be an issue with customers the low price competitor can only compete on price.
Reducing the price is not only one and the last solution to remain in the competition.
Sales value created through better after sales service, better product satisfaction in terms of quality and many other.
Decision should be based on careful evaluation and after some research.
Low price may get other competitors down, but you will be the first one to fall.
You have to be smart when you lower your price, as many customers may loose confidence in your products. The best way to beat your competitors is to offer the Best Price-Quality combination, of course together with professional marketing and sales activities.
In some cases, it's really that low price is the only solution to be more competitive but as Nadeem and others said there is a lot of ways to success for beating competition.
To choose the best way and to get a good response for your question, you need to study internal and external factors :
As Internal factors :- are you new in the market or no ? - your position in the market : are you a leader or - your products specifications - your margin/price politic- possibility to add new details for your product to sell it more expensive and with better margin.....
As external factors :
- customers needs and expectations : is price the first criterion for buying decision process ? - the market entry rules : if you are new in the market, how it works in this market to enter ? - the level of competition : is the competition high ? medium or low ? - how can competitors will react when you change price ? ...
Low prices is not alway the answer to beat the competition, however if you haven't established customer loyalty program(s) or customer value, then yes. Think about Kia VS. BMW or Iphones VS, android lenovo phones, the customer loyalty and demand for iphones (example) will be more profitable in the long run (globally).
I don't think so. Yes i admitted there are some people they are really looking in low price range. but if you have a high quality. Best Presentation.You engage to the customer and give them a unforgettable shopping experience by giving them a excellent customer service. these few people will sustain the business they will be your loyal customer. And these people will be your living advertisement they are the one will help you to advertise your brand or your products they will share their experience to their friends relative co workers and etc.
OF COURSE NO
BUT SOME TIMES IT IS POWERFUL TOOL
Low price is one of the factors but not the only, competition could be achieved through the quality of the end product and through the delivery time among many other factors.
