Selling on price

Selling on price is the nation’s oldest way to get the sale. Undercut the other guy. This can be one of the worst things you can do for your business. This could also be the best thing for your business. I’ll just state the obvious. If you can’t afford to give Wal-Mart prices, then don’t advertise that you can. But if you can get in the position to be the “Low Price Leader”, then you might be wise to do it. You can do this a couple of different ways. First is to sell a cheaper product or find a better source of your product than your competition. (or cheaper labor). The second way is to have very, very low overhead to be able to afford to make a smaller margin on your product or service. But don’t kid yourself thinking you can just “make less” than you competitor just to make the sale. You will fail and inevitably have to close your business. It has been tried and tested this way. If you aren’t in the position to sell cheap, DON’T DO IT!

The Master has spoken!