When your competitor makes an offer at a lower cost, it can feel like a threat to your business. It is a fact that a lot of industries face this issue. They reduce their prices to acquire a larger market share and are successful in doing so. Photography is just like all the other businesses where you may face stiff competition.
There are two basic factors which affect choice of a customer.
Here is the correct game-plan to follow when your competitor prices their services lower that your pricing structure:
Up The Anti
Increase the value in your service. Photography is a creative field where every client comes with different choice and taste. If you can offer valuable service, that can justify higher rates, you can still make a killing. Just by giving excellent administration facilities and a robust backup, you would be able to convince the client about the authenticity of your business? When you go the extra mile, you create a connection and relationship with your client; who cares more about your dedicated and accurate service delivery than the lower price of your competitors.
Quality of work will determine a lot of your pricing. All your shots should depict only one thing, that you are highly professional and have a strong brand. It’s true that customers care about cost, yet they are thinking about the quality as well. Customers are happy to pay a little bit more to buy higher quality. So, maintaining quality over quantity can do marvels for you.
If your competitor has lowered the price, you need to analyse the competitor’s situation. It’s every businessman’s nightmare when a competitor enters the market with a comparative price. But don’t panic; you have to focus on their business strategy and see if they are delivering the same quality of work or service as you do.
We don’t recommend lowering your price. Before you lower your price, identify differences in your service compared to your competitor. You should only change pricing when the competitor comes up with the exact same product. In that case, they will easily acquire your clients. If this is the case, a better strategy is to increase the value proposition of your service or product.
If competitors offer free services, launch a promotional price and opt for free give away. There is always a loud buzz when individuals make deals or drop costs, yet eventually, all the price drops will have to come to an end. They will go back to their normal prices soon, but the winner is the one that keeps a balance between the price and the quality of their services or products. Look at companies like Jaguar, Rolls-Royce, Maserati .. these will never have a end of year sale advertised. They maintain standards and quality.
Explore Potential Situation
Is your competitor intending to acquire market share or the focus is to launch the same product with a different angle? Finding the correct answers to these questions is crucial. It may help you see a potential market that you could advertise to. You should always keep an eye on new marketing trends, and marketing strategies your competitors use, to explore and improve and broaden the horizons of your business.
Establish Your Brand
If you center around cost alone, you’ll never be the one who can beat the stiff competition. Concentrate on that what is the strength of your product or service. This will give value to your clients and why your product or service will stand out among other competitors. Establish a healthy reputation of your brand and know your customers’ expectation and need from your services.
Choose a Powerful Strategy
Structure a rock-solid marketing strategy. If your competitor has strengths in some fields, then identify them, and try to emulate them. Use what is working for your competitors in your favor. Never forget that people buy a product or service with emotions, NOT logic. So, cost is not a major factor, as long as you can show value and woo your customer emotionally.
Try not to Lower Your Prices
It is always recommended to focus on value that you provide to your customers.
Another perspective to depend on is business organization. If your administrative system is clean, your clients will stay loyal. You need to have a strong business network so that clients may feel comfortable to approach you.
The value of your work will keep the audience engaged and they will not get distracted by other sellers.
If you keep on evaluating your services and provide real value, you will always beat competitors. So, play the long-game.