View Full Version : is Price war the only way to succeed

05-02-2016, 01:51 PM
hi everybody , I am new to the forum. I found this one on Google by searching small business forum and got to here.

OK I don't want to bore you guys with details so I try to keep my long story short

Sorry to note - I do not speak or write English very well. Hope you know what I am talking about.

I have been re-selling something that is uncommon but expensive. At first I was the first person in my market to sell something but later on there was someone who came into my market and showing his attitude very vigorously.

OK Let me tell you the cost of my products I buy from the provider- It's around EUR 700 - EUR 1000. Yes it's the cost.

At first I sold it at around EUR 900 to EUR 1300 , when he came, he sold the same thing at EUR 800 to EUR 1200 whose price is obviously lower than me.

I do not want to show the attitude that I want price war, so I slowly lowered the price at EUR 850 to EUR 1250.

He has obviously got more sales now and I've lost lots of clients. I still do not want to start a price war so I lowered the price at EUR 800 to EUR 1200 , which is the same price as him.

At the same price, I am confident because I have better service and packaging.

He then responded quickly, and he dropped the price at EUR 750 to EUR 1050. Remember the cost of us is EUR 700 to EUR 1000. I don't explain here but I am pretty confident that he cannot get lower than EUR 700 from the provider, since I have better and longer relationship with the provider but I really cannot get any discount.

In recent months, I have endless sleepless night..... I've talked about this with my friend for many times.

My friends' various comments for me

1 He wants to take you down first. You should start price war with him
2 If you don't make money, you can't let him make any. Always keep price lower than me, see who die first
3 Keep your price, keep your style, people who are looking for expensive products do not only look at the price, they may think your products are better than him because yours are more expensive (but I doubt that)

What do you think?

He is pushing to the limit of margins, I don't really mind price war, but I can't see who has the advantage in the price war, in the price war there is NO winner, only who leaves first. Pretty sure I will not leave, but what if he doesn't leave too?? His attitude at his first point of coming already shows that he does not mind price war

Another problem is (which I see is the more important problem) - We are actually selling on a platform like EBAY (but not truly EBAY). We have little seller protection. That means - Buyer is always (or often) right.

If I start the price fight with him, I am pretty worried that he would pretend to be a true buyer and use the nasty skills to make me lost $. As a result, I must keep some earning in order to keep selling, otherwise it's very risky.

Some comments from my friends is --- I should keep my price , keep my style, and people who look for expensive products do not only compare the price, they will have the perception that higher price is better.

However, I don't know, I am not sure.. It sounds right, but it sounds wrong too. I don't know. It 's like making sense ,but it's like not.. I don't know...

What will you do if you are in my situation?

10-13-2019, 12:19 AM
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