We are in no hurry to reduce prices following our competitors
Posted: Tue Jan 28, 2025 4:00 am
Panicking and urgently changing prices just because other market participants have done so is not the best solution, especially if you are fairly well established, have a large customer base and a wide range of products.
As a rule, dumping has a negative impact on the position of weak companies that do not have the resources to adequately respond to competitors' actions. For long-standing companies, a wait-and-see tactic may be the best solution: no one will sell at a loss for too long, so after some time, prices will return to their previous level or become higher.
A decrease in sales in this situation is quite likely. Try to find hidden reserves and optimize expenses:
Make sure all employees are busy with work. Perhaps someone can be laid off without affecting the company's operations.
Look at what functions make latvia email list sense to outsource - delivery, storage, accounting, advertising, etc. Small companies often do not make sense to keep employees on staff who cannot be provided with full employment.
Think of an order processing algorithm that will eliminate the need to repeat the same actions several times, such as calling the client to clarify details, informing about the delivery day, etc.
Optimize your warehouse by placing products according to their demand so that employees do not have difficulty picking orders.
It is recommended to start a confrontation with competitors with the two methods described above. If the competitor continues to dump, it makes sense to consider other options for fighting for the consumer.
Free shipping is a trump card that is hard to beat
The need to pay for delivery, and to pay more for it than the product itself is worth, is one of the main reasons for refusing to buy in an online store. Companies that can afford to deliver an order and not charge a penny for it are in a clearly advantageous position.
Russia's largest online retailer Wildberries introduced 100% free delivery after the announcement of restrictive measures in March 2020 and confirmed its leading position in this market segment. The ability to receive goods without additional costs became a decisive factor in choosing between this company and its competitors.
As a rule, dumping has a negative impact on the position of weak companies that do not have the resources to adequately respond to competitors' actions. For long-standing companies, a wait-and-see tactic may be the best solution: no one will sell at a loss for too long, so after some time, prices will return to their previous level or become higher.
A decrease in sales in this situation is quite likely. Try to find hidden reserves and optimize expenses:
Make sure all employees are busy with work. Perhaps someone can be laid off without affecting the company's operations.
Look at what functions make latvia email list sense to outsource - delivery, storage, accounting, advertising, etc. Small companies often do not make sense to keep employees on staff who cannot be provided with full employment.
Think of an order processing algorithm that will eliminate the need to repeat the same actions several times, such as calling the client to clarify details, informing about the delivery day, etc.
Optimize your warehouse by placing products according to their demand so that employees do not have difficulty picking orders.
It is recommended to start a confrontation with competitors with the two methods described above. If the competitor continues to dump, it makes sense to consider other options for fighting for the consumer.
Free shipping is a trump card that is hard to beat
The need to pay for delivery, and to pay more for it than the product itself is worth, is one of the main reasons for refusing to buy in an online store. Companies that can afford to deliver an order and not charge a penny for it are in a clearly advantageous position.
Russia's largest online retailer Wildberries introduced 100% free delivery after the announcement of restrictive measures in March 2020 and confirmed its leading position in this market segment. The ability to receive goods without additional costs became a decisive factor in choosing between this company and its competitors.