6 Strategies for Avoiding the ‘Race to the Bottom’ Price War You Don’t Want to Win

6 Strategies for Avoiding the 'Race to the Bottom' Price War You Don't Want to Win
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RFP. If you’re an entrepreneur who ever has to go to tender with your product or service – those three little letters can raise your blood pressure and unleash a barrage of expletives. Why? Inherently, we know that a high percentage of the time, Requests For Pricing (or Proposal) are often decided by the lowest cost provider. Of course, this is not always the case, as several variables may influence the decision, but you get the point.

While there may be subtle curve balls we can throw to change the decision-making criterion in a call for multiple providers, there are simpler ways we can avoid entering that rat race altogether.

The first lesson for many entrepreneurs is that not all customers are created equally. Just as a larger organization might identify their decision making criterion when selecting a vendor, an individual consumer subconsciously is juggling several variables when deciding whether or not to buy from you.

Knowing that the price tag is also being weighed in their minds against quality, durability and other factors, businesses can learn to position their offering in a way that avoids a single variable (price) decision on behalf of the buyer. This can be done in several unique ways.


Home entertainment companies may sell televisions and home theaters (which can be compared apples to apples with other companies), but they can also sell installation services, an extended warrantee, and integration solutions based on the Internet of things (IOT) that transform the way consumers might enjoy their products.


The automotive industry is a highly competitive one. Each of the major companies in a particular customer segment offers comparable products (ask anyone with a truck, “Ford or Chevy?” and you will start a…

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