When is it OK to Compete on Price?
Competing on price is a no-no for many distributors. Few want to say, “The reason why people buy from me is price.” But, do all of your customers want to buy from you for your customer service, people or your other services? When customers are surveyed, many say they at least need competitive pricing to justify doing business with their supplier.
The reality is, there is a segment of customers who only are interested in price. And it is their perception on whether or not that price is low. It is a price that is acceptable to them.