Help, Quick, Competition......

[reyna12]

I have been selling lets say, product X for a while and now another company has decided they want to sell product X.

My Product X is much better quality selling for say £20
Their Product X is of poorer Quality selling for £16

Although mine is better, i heard from a source that they say the quality of their Product X is alot better, theres is just cheaper.

What action should i take against this as in, win customers back or over to me to buy Product X?

Thankyou
Matt - Product X

[Brian Turner]

Hi reyna12, and welcome to the business forums.

Sounds like you could do with some strong brand marketing, to emphasis the fact that your customers are paying a little extra for a far better service. Have you seen the Stella Artois commercials that emphasise this very point to? You should't need to go to that extreme, but you can really make a point on your website and/or general sales literature that to sell cheaper would be to significantly reduce quality, or cut corners.

Also ensure that you drown them out in marketing terms by making sure that people see your company first associated with product x. For example, on the internet you could do this with a wider PPC campaign and some very well targeted SEO (Search Engine Optimisation) for starters.

Does that help at all? Feel free to ask any more questions.

[reyna12]

Have you seen the Stella Artois commercials that emphasise this very point to?

No What Are they? Sorry

but you can really make a point on your website and/or general sales literature that to sell cheaper would be to significantly reduce quality, or cut corners.

That is great advice!, i will be using that technique and it's a very good point

wider PPC campaign and some very well targeted SEO

Currently, We do not advertise this service on the internet.

So i will make a point about pricing and quality

Anything else?

[johnnynemonic]

I as far i see u hav 3 options:

1) as described by Brian try to promote the higher quality aspect of the product

2) cut your prices

3) try to offer a similiar lower quality lower priced product ie give your customers an option.

I personally think option 1 is going to be tough. If possible option 3 would be best because in one stroke you are eliminiating their threat and exploiting an additional market for a lower priced product.

If none of the above work you are in serious trouble.

[reyna12]

I have lowered the price of the product so people can buy great quality products for same price.

Shame nike or intel couldn't do the same

[johnnynemonic]

too true dude

[paulp]

Brand marketing and advising customers what benefits they can obtain by purchasing your product X over competitor X. You must believe that your product has benefits i.e. better quality, otherwise you will have to re-think your strategy.

[becki]

hi reyna! hi paul! hi johhny!

I say do it all. but thats just me being a tad aggressive.

[paul andrew]

I would consider giving small free samples to prove your product is much better. You will always get some people buying on price alone.

regards
Paul

[Suzanne]

Do emphasise why your product is so much better for the customer when selling.
Try this for some good tips,
http://www.business-talk.co.uk/showthread.php?t=66