My competitors have such great buying power we just can’t compete when it comes to the price.
This is a common concerning for online and offline merchants alike, who consider using any price tracking software to reprice their products. Perhaps you can’t compete with all your competitors prices but you may well find that you can compete quite well with some competitors of similar size.
Forget about using Price to Compete with the Big Players
Research competitors that are smaller or of the same size as yourself. Competitors that currently offer the same products at similar prices. This type of competitor will more than likely run a similar type of operation as you do, This means it must be possible you can compete on price. Even if it means reducing your overheads by just 0.5% for example.
0.5% may not seem like a great number but if you apply that 0.5% as a reduction in price to some of the products your competitors are selling more of than you are may just mean you have matched your competitors price. Or even beaten your competitors price.
Compete on Service
Competing with competitors bigger than you can become difficult. Beating or matching prices of competitors that have better buying power than you may put a stop to repricing altogether. However, all is not lost. Compete on service instead.
There are some huge companies that offer outstanding customer service, incredible retail channels such as inviting high street stores and attention grabbing online shops and applications. There are also many big companies that fail in 1 if not all of the above types of service.
Being smaller than your competitor may mean that you can offer a more streamlined, personal customer service. It also means you can improve your online offering, such as your website, without needing to go through 3 months of meetings. You may not have the budget to allocate to your website that some companies do, but try and find a small amount such as 100 dollars a month and pin point one small improve you could make to your website to make the checkout process easier for customers or increase conversions. Continue to find the same small amount each month. 6 months later, your website is going to have 6 fewer issues that may have been holding back sales or impacting customer service.
We would love to hear how you compete with your competitors. If you use price tracking and repricing as part of your strategy or not. Please leave us a comment or tweet us at @repricingco.