Often, inexperienced entrepreneurs rush to undercut their competition on price. However, there are sometimes unseen or unrealized opportunities that can lead to success and sustainability without cutting into profits. Consider one of these areas in which your new business idea could compete and still preserve price points.
- Quality. Is there a gap in or lack of quality in the existing offerings? How can you meaningfully improve on this service or product quality? More important, do customers even want - and are they willing to pay - for a higher quality product or service?
- Service. Can you offer better or more convenient service? This goes beyond just adding people to answer a phone. Consider how can you really add a benefit to customers by creating a better experience overall.
- Innovation. Is there an opportunity in the industry for developing a new product, service, or process? Have you found a way to deliver a product or service faster, better, or cheaper? In some cases, this may actually mean creating a proprietary innovation.
- Niches. Is there a specific market that's not being served by your current offerings? If so, how can you connect with them on a real, meaningful, and even emotional level?
In the end, success rarely comes from price battles for new entrants. Instead, look closely at your industry and target market, identify their pain points, and decide how you can add value. If you can do that, customer will come regardless of price.