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Price and online competition

Discussion in 'General Business' started by mrkeight, Mar 31, 2019.

  1. #1
    Hi i am running online business long time now

    Getting orders only with discount,

    For some time i stopped now the discount but competitors continue to give huge discounts
    SEMrush
    But i have seen better sales now without discount although competitors are yelling for 60% off

    How Can be that explained? -
     
    mrkeight, Mar 31, 2019 IP
    SEMrush
  2. mmerlinn

    mmerlinn Prominent Member

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    #2
    Lots of different ways.

    1) Maybe you are providing something that your competitors are not.
    2) Maybe you have faster shipping.
    3) Maybe your site is easier to use.
    4) Maybe your customers think your competitors are skimping somewhere.
    5) Maybe your customers did not see the competitor's website.
    6) Maybe they like you and do not like your competitors.
    7) Maybe your competitors have burned your customers in the past.

    No matter what the reason, you cannot win a cutthroat price game with your competitors, so it is better to provide something that makes you different from the competitors.

    Low price, Good service, Good quality
    Pick any TWO, you CANNOT have all three!!!
     
    mmerlinn, Mar 31, 2019 IP
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  3. mrkeight

    mrkeight Greenhorn

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    #3
    ok please answer this!

    Why not all three cant be done?
     
    mrkeight, Apr 4, 2019 IP
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  4. Sugavanas

    Sugavanas Well-Known Member

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    #4
    To try and have low price, good service and good quality at the same time is just not possible unless you wouldn't mind making any money out your business. Offering low prices at the beginning of a business is pretty normal but after a while, once your investment dries up, you will have to either sacrifice the cheap prices, your service or your product's quality.

    If your sales are still good, then work on bringing out different products than your competitors. Improve your service more, and market your business so even though your competitor might have cheaper price, customers will prefer buying because they would have heard your business's name.
     
    Sugavanas, Apr 4, 2019 IP
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  5. jrbiz

    jrbiz Acclaimed Member

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    #5
    In addition to the reasons that @mmerlinn offered above, there is another potential explanation, depending upon what you are actually selling. There are times when a higher price makes the offer more attractive. I recall an acquaintance once commenting that he had real trouble renting out his vacation home online until he raised the price of the rental substantially. He believed that by doing so, his offering was viewed as being better, more luxurious, etc. The same is probably true for many luxury items for sale. The higher the price, the more exclusive the product looks to the buyer and, for some, it may be more attractive as a result.
     
    jrbiz, Apr 5, 2019 IP
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  6. MatBerrows

    MatBerrows Greenhorn

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    #6
    probably you need to launch affiliate program.
     
    MatBerrows, Apr 5, 2019 IP
  7. qwikad.com

    qwikad.com Illustrious Member Affiliate Manager

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    #7
    Trustworthiness can be an issue sometimes. If your users feel you're more trustworthy, they may choose you over your competitors.
     
    qwikad.com, Apr 5, 2019 IP
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  8. irule272

    irule272 Well-Known Member

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    #8
    Would have been helpful for us to answer your question if you let us know what your business is all about.

    There's a surplus of services now in the internet and number of providers are growing and growing. It means, lots of competition and lowered prices on services.

    But nothing beats quality services, honesty to your customers and integrity. Recurring clients are what will make you afloat on any business.
     
    irule272, Apr 5, 2019 IP
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