Competition through low prices

Often, start-UPS think that if you make low prices, you can compete. But the problem is that low prices make the business less profitable, fewer margins and less revenue.

It is necessary to compete with the help of low prices not constantly, but by holding temporary actions to reduce the prices of any single product or group of products. For example, you sell food and not to write off and then dispose of expired goods, you can hold a share on this product at a discount, give it at cost or even in the negative. Make a newsletter to your customers and offer the goods at a discount, a great opportunity to please buyers and sell the goods.

The big players in the market will always bypass the small ones at the price level, as they are ready to work at a loss for many years. For example, Amazon has been working in the red for a long time and it is a very large company, which is very difficult to compete with.

If you are starting a business you need to choose a definitely different strategy for the development of the company, but not a strategy of low prices. If the low price is the only thing it you can differ from your competitors, this is your biggest problem.