Many companies don’t realize just how damaging it is to be on the receiving end of a pricing war. Instead of taking chances with your brand, you can take proactive measures to make your products appealing to the market.
Manufacturers often enlist the help of a network of resellers to help them move products and increase their market reach. Due to increasing competition, sellers often resort to lowering prices to gain a pricing advantage.
Enforcing a MAP policy keeps your resellers from engaging in a costly pricing war with your products. Here are some credible ways to avoid getting on the wrong side of a price war:
Play your strengths
To be competitive and win, you need useful insights into your strengths, and you need to learn how to play them. It requires you to place outsized energy on areas that can help you produce extraordinary results.
If you have an edge on the market, then you should use it to the best of your abilities. For instance, if you have a massive following on Facebook, you can make that your main form of advertisement or marketing. Pressing this advantage can help you increase your sales and grow your market presence.
There’s no need for you to create a presence on all the available social media platforms. Doing so would spread your effort thin while producing dismal results. Instead, you should focus all your energy on the areas where you can build the best results.
Minimize your weaknesses
One school of thought says that you build success by playing your strengths and ignoring your weaknesses. However, you should take such advice with a pinch of salt. You need to put in enough effort to keep your faults from becoming a liability.
Ignoring some shortcomings in your core business attributes can deal you a crippling blow. For instance, you will have a hard time growing your revenue if your ability to prospect for new business is weak. That’s not a weakness that you can wish away.
Instead, you need to make a list of all your known weaknesses and explore possible solutions. Some of the ways to shore up the shortcomings can be as simple as matching team members with their skills, strengths, or expertise.
Peek at the competition
In addition to playing your strengths and minimizing your weaknesses, you also need to study the competition. Only by doing so can you understand how they operate and get insights into their shortcomings. These are the people you will be up against when trying to grow your business.
Studying the competition lets you create a host of tactics to help you beat them in the race to grow your customer base and increase your sales. Seeing how you stack against the competition can help you streamline your marketing campaigns. You can emulate their best strategies or strengthen your own.
Failing to differentiate your products on the market leaves you vulnerable to pricing wars. That might tempt some of these resellers to lower their asking prices to increase their sales and liquidate their stock. With the right approach, you can ensure that your products fly off the shelves.