From a consumer’s standpoint, this is an awesome opportunity… or is it?
What I’m about to share with you, and I hope that you never have to experience this as an entrepreneur, is a degrading form of sales called “Price Wars”. Like I stated above, consumers love when this happens.
However, there’s a downside to this madness. Let me explain!
When I first started my service company way back in 1995, my slogan was, “We clean your carpet, not your wallet”. Catchy, right? Well, it almost caught me a one way ticket to bankruptcy. My thoughts at the time, were if I kept my prices low enough I would attract all kinds of work.
Oh, I got work! Just not the kind anybody else wanted. My low prices were a magnet for people who didn’t have any money. Sadly, I was working my butt off slaving after pittance cleaning up the nastiest, grungiest carpets.
Then it got worse.
Enter the new guy in town. He came in all guns a blazin’. Offering the town folk all kinds of promises. He was offering his services at roughly 10 percent cheaper than mine. His ads reflected that he was the cheapest and he wanted everyone to know it.
That’s insane! What the heck is this guy thinking? Undercutting prices and stealing customers…what a arrogant jerk.
Wait, I was that guy. I had made it my point to keep my prices lower than my competitors in order to attract clients and now someone was offering cheaper prices then me.
