How to compete

In conditions of strong competition, the market resembles a raging sea. The more competitors, the fiercer price battles. In order not only to survive, but also to get the desired profit, you will need skills to jointly solve problems with colleagues.

Instruction manual

1

Identify large and small market participants. You need to know large ones in order to focus on prices and other conditions that they provide to customers. Small ones will be needed to select future partners, because together it is easier to survive.

2

Gather retail pricing information from major competitors. Do not be content with a superficial look. The pricing policy of large companies sometimes implies the sale of goods at a price close to cost. This is to attract customers. And profit is generated through sales of other goods to the same buyers. Therefore, fix the prices for the entire range that is present in your stores. Analyze information to capture the tactics of a major competitor.

3

Write the desired purchase prices for the goods. To do this, imagine that you can put in the store the same prices as large market players. Let a certain product cost 900 rubles in retail. Determine what should be the wholesale price so that you get the right profit from the sale of goods. Compare the result with the wholesale price that suppliers provide. Surely the goods have to be purchased at other prices - higher.

4

Find out under what conditions the supplier can provide prices obtained as a result of a previous analysis. Most likely, you will need to purchase large volumes, which you can not sell on time, to settle accounts with the supplier.

5

Cooperate with small competitors for joint purchases at the right prices. Invite a sufficient number of partners to buy the necessary volumes from the supplier and receive favorable conditions. So you can compete with large companies, not allowing them to get a price advantage.

Useful advice

If the price gap is too large, the above method may not work. In this case, sell not end products, but services. If a major competitor’s product costs 900 rubles, offer customers a training course on the effective use of the product for 1700 rubles. Moreover, the price of the course includes the same product for 800 rubles, the rest is tuition. This way you can mask prices by occupying adjacent niches in the market.