PRICE WARS: How to get IN and OUT ALIVE and THRIVE????

Rising Star Posts: 161 Reputation: 2 Join date: 2009-06-28

I had started a mini project last year and I realised that i am in a PRICE WAR business environment..
The customers' main decision to purchase are largely dependent on the pricings..
After much considerations, this project had to be dropped..

I had also noticed that the gas (for cooking food at home and f&b establishments) industry is also in price wars..

I wonder how we can clear this at all?
Any advice?

Depending on situation. We usually position as price leadership or product leadership.

Either we are better priced product compared to market or we can differentiate by providing premium product. Price leadership or product differentiation in theory.

Premium product could also means existing product but added-value. Same product specification, but if we put in longer warranty period, the perceived value is different.

Price leadership need not emphasize much: just get cheaper product without quality concern.

Rising Star Posts: 161 Reputation: 2 Join date: 2009-06-28

Price Wars take place where consumers percieved the offerings in the marketplace as commondities..
Which means that every products, services in the specific market environmeno are the same in all aspects of concerns of the customers..

That's when it is good to create the UNIQUENESS in our offerings..
I could not go into details in each item and it will be good to onsider some of these items to stand out and differentiate:
1. Branding (Psychological MindShare & Creation of Market Percieved Value)..
2. Market Positioning..
3. Products/Services..
4. Price (the alterations in pricing MUST not contribute to the Price War but to attach the customers' percieved value to it)..
5. Places of Distributions & Channels.
6. Promotion (Note that Promotion is NOT discounts or special offers.. Those are under the Price category because they alter the pricing aspects..
Promotion is the transmission and communication of our offerings to the market)..
7. People (e.g. Suppliers, Employees, Customers, Customers' Customers, Compeitors & Alliances)..

I am writing from memory, so if I left anything out or anyone who have any ideas and comments, please feel free to add to this list of items ya..

Hi Inle,

I recommend you read the book "Blue Ocean Strategy". It offers alot of insights on creating unique selling point (USP) and venturing into a distinct market rather to be engaged in a 'red' (bloody) ocean where everything becomes commodities, because products are mainly based on different pricings.
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Rising Star Posts: 161 Reputation: 2 Join date: 2009-06-28

Thank You for the reminder, Wealth Creator..
I have being putting this book aside for many many months since last year already..

It will be on my agenda next week..

Hi inle,

No worries, I will contd to remind you to read it next week.....haha.
_________________
Rgds,
Wealth Creator

"Revealing The ONE Secret That Has Made Millions On The Internet...
And I'll Give It To You FREE...Yes, absolutely FREE!
You dont even need to opt in with your email.
What are you waiting for?"
Go to http://bit.ly/aG5rYx and click download!

I think in a price war, no one wins. So it's not about surviving one, or thriving in one. Just staying away from one is very good. Avoid such a war at all cost.
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