Strategy to avoid Price Competition

1.    Product Innovation

Innovation is the key to move ahead in the cluttered market. Unique products can’t be compared with other low price offerings and thus, premium can be earned out of it.

2.    New Market Exploration

If competition is playing on price, it’s better to explore new markets where a good pie of the market is available even at higher price.

3.    Benchmark Pricing

Understanding pricing of other players in the industry and the value being perceived by customers will give benchmark price.

4.    Product and Services Bundling

When similar products are available everywhere, it’s the best service provider who wins. When customer is at ease, he doesn’t care about price.

5.    Better Packaging

Developing packages that might catch the customers’ attention better can give edge over competition. Creating packages (smaller or larger) which can serve customers better or can increase their comfort zone might help to win in the market.

6.    Brand Improvement

Trust and reputation are two very important qualitative characteristics which can make or mar an organisation. Continuous focus on brand and looking ways for improvement of reputation will go a long way on maintaining customers’ trust.

7.    Creating Supply Shortage

This strategy can help once or twice but can be detrimental for regular items. So, it can be used only for the products which are soon to be removed from the market.

8.    Words on Future Price Rise

Rumours of future price hike make the customers step up and stock in good quantity resulting in sales hike.