How to Compete Against Low Prices

The right choice of the marketing system and the partners who will sell the product is key to compete profitably with other options with lower prices.

Friday, February 8, 2019

Ariel Baños, price management specialist and founder of, explains how through proper marketing, it is possible to compete against the prices of companies manufacturing their products on a large scale and at lower cost, such as those made in China.

Sometimes the main differential of our proposal is not the product or service itself, which may not even differ much from the competitors, but the business model or marketing system we use.

To choose the stores where to sell, it is necessary to evaluate variables such as location, population in the coverage area, exhibition space, among other aspects. It is necessary to have a controlled commercialization, so as not to cannibalize the product and protect its current sales points. Choosing our commercial partners is fundamental for them to transmit in the best way the value of our proposal, and consequently we manage to defend the sale prices.

Displaying in special spaces in stores, with furniture supplied by the company, helps to highlight the presence of the products and puts them in the hands of potential customers. In addition, special care is given to the packaging of products when they are purchased by the end customer. Taking care of the details of the customer's experience with our product or service, helps to reinforce our strategy of distinction in an increasingly competitive market.

When our proposal has real differentials, which are notorious for customers, we should not be afraid to charge prices in line with the leading brands in the market (or even more).

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Identifying a segment that values the differentials of the product or service and charging a price aligned with the company's strategy are essential to avoid competing with the lowest prices in the market.

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