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Use price as a strategy, not a differentiator

  • By Alan Knott-Craig
  • August 14, 2017


Competing on price is a race to the bottom.

Don’t do it.

The only times you should apply lower pricing are:

a) Hooking customers for other products that are more profitable (cross-subsidization)

b) Driving competition out the market with the intention of pushing prices up once you have a monopoly.

In other words, discounted pricing is a strategy, not a differentiator.


Stay away from commodity products and services.

Sell stuff where you have pricing power, i.e.: only you can provide it.

When you drop prices, do it for strategy, not competition.

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