How to Stop Competing Just for Price?

Charging tariffs consistent with the positioning of the brand and communicating its differentials with respect to the competition, is essential to stop competing for price and redirect the strategy according to the value of the product.

Friday, December 6, 2019

Ariel Baños, specialist in price management and founder of, explains three strategies to avoid competing only for the price factor, because in these struggles there are no winners and only attract the least loyal customers.

Detail of the three strategies:

1. Identify a segment that values your differentials
Who are the clients most favored by the benefits of our proposal? When we answer this question, we will identify the customer segments that we will be able to serve profitably.

2. Charge a price consistent with your positioning
We must not confuse customers in our quest to generate more sales. The price must be aligned with the message we are trying to convey to our buyers. If we have a proposal with big differentials, the price should never be low.

3. Clearly communicate your differentials
Never assume that customers already know or imagine the benefits of our proposal. The value isn't always so obvious. The company is responsible for communicating the superior value of the proposal and how this value improves the customer's life or business.

See full article at (in Spanish).

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How to "Cheapen" a Product Without Lowering Its Price

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Learn how to improve price perception of your product or service without having to give discounts to customers.

By Ariel Baños
President and founder of FIJACIONDEPRECIOS.COM

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