One of the biggest factors in business is cost; and, countless efforts are taken to reduce cost to provide a price savings to the consumer.
Various strategies have been employed by business owners to wage price wars against their competition. Unfortunately, this is almost always a short term win with long term consequences.
The snowball effect cost-cutting price wars have on the market reduces the product or offering to the minimum viable product (MVP), or, put in other words — a commodity.
Generally speaking, a commodity has very small profit margins; therefore, the market is often reduced to only a handful of business — those that are robust enough to make up profits on volume.
If you feel that your company is fighting the ongoing price war with your competition, contact OzComm today! We’ll help you avoid commoditization, and keep your profits.