When competitors in your industry start lowering their prices in the hope to gain market share, one thing that will 'speak on your behalf' is your UVP.
Many entrepreneurs have a false belief that they have to compete on price to gain a market share, this can't be further from the truth, this strategy leads to a 'race to the bottom'.
Consider Ade who runs a clothing shop in an area densely populated by tailors (or better still, fashion designers) and every one of them are competing for 'who can do it cheaper', what happens? Quality drops! Soon Ade won't be able to attract a worthwhile customer, only those at the lowest rank and are desperate.
This is what happens when you compete based on price, rather a more worthy place to compete is your Unique Value Proposition(UVP).
Consider this, apple products are significantly more expensive than those of their competitors of the same function. So why do thousands of people queue up in front of the Apple store every time a new product is been released? Aren't there other cheaper quality options they can explore?
The reason is simple, Apple focuses on its UVP which is beautiful designs that work every time. Unlike its competitors who are more focused on a killer feature, Apple focusses on the overall design, that's why you can always bet on its quality.
This same applies to every notable (and less notable) company that charges a premium. The key to this strategy is to make sure you can justify the higher price with a standout UVP.
This strategy is also applicable to every type of business ie if you run a clothing line, your UVP could be your personalized customer service, a full refund option, a fast delivery, and other options.
With this said, your focus should be increasing value so that customers are willing to pay rather than slashing your prices.
