Tips for Competing Against Low Prices

Your competitors are selling your products for less. And your company refuses to enforce MAP policies. Most ecommerce teams throw their hands up and accept losing 40% of price-sensitive shoppers. After helping hundreds of brands increase conversions without competing on price, I've learned something crucial: ↳ Customer acquisition isn't the problem. Customer preference is. When Munchkin faced this exact challenge competing with Target and Walmart, our team at The Good discovered something surprising. Their mobile users weren't leaving because of price. They were bouncing from invasive popups and poor navigation. We removed the friction. Optimized their mobile experience. Their bounce rate dropped and KPIs lifted. When you can't win on price, every visitor becomes precious. Here's what actually works: 1️⃣ Create exclusive SKUs your resellers can't touch Nike's SNKRS app exclusives command premium prices because resellers literally cannot obtain them. 2️⃣ Build loyalty programs that compete with discounting SEPHORA's Beauty Insider members generate 80% of total sales. Not because of lower prices, but because of exclusive access and personalized services. 3️⃣ Leverage technology resellers can't justify Warby Parker's AR try-on creates experiences that discount retailers can't replicate across their entire inventory. 4️⃣ Bundle products strategically Harry's grooming bundles make price comparison impossible while providing genuine convenience. The companies thriving under MAP constraints understand one truth: ↳ Customers don't buy from the cheapest option. They buy from the option that provides the most value. Your job is ensuring that option is always yours. What's your biggest challenge competing without price flexibility?

Last week we closed a $145,000 deal when our top competitor pitched $45,000. Here are the 3 strategies we use to win 90% of our head-to-head deals (without discounting): This happens to us a lot... HockeyStack is a great fit, and our prospect prefers us over competitors. But the competitor is 3x cheaper and tires to undercut us on price. This is a HUGE mistake. Yes, it's hard to win over a CFO with a $100K+ price differential... But discounting heavily and being the low cost solution ACTUALLY hurts you. Here’s how we won this deal without competing on price: 1. Deeply understand the company’s needs In this example, the company had $300M in funding and was valued at $6B. They have over 1,000 employees and a TON of needs. We had 3 people in the first demo who came inbound. It was clear from the very first call that two of them were gonna be champions and the other one is going to block the deal. We scheduled 1:1 calls with the first 2 to map out the entire marketing team, how every team would use HockeyStack for their own needs, and why other purchases got blocked before. This allowed us to build a very custom demo for the entire group and the executives, and those 2 champions fought for HockeyStack when the other prospect KILLED the deal TWICE. Each time, our champions revived the deal with the frameworks and roadmaps we built together. 2. Focus ONLY on key segments We are great in mid-market and enterprise - not so much in SMB. So we focus focus heavily on these 2 segments from marketing to product development to sales because we KNOW we can deliver outsized results. In return, the supporting logos we have, references, testimonials, and our sales process works well for our target segment. Giving us the confidence not to compromise on price. Remember: If you sell to everybody, you are selling to nobody 3. Executive Alignment from Day 1 From the very early days of the process, we involved all key stakeholders from 4 different teams and the CMO. Had a separate meeting with their agency where we uncovered how they “really” make purchases, things we need to be careful about, and what we can give when it came time to deal with procurement. This deal could have died 10+ times over the last 6 months and didn’t because we intentionally took the time to build these relationships. My point? Don’t compete on price Compete on building the best product for a specific segment of your target audience Then you won’t need to discount to win deals

Competing on low price? That’s a race to the bottom. Instead, attract customers with a 𝑝𝑠𝑦𝑐ℎ𝑜𝑙𝑜𝑔𝑖𝑐𝑎𝑙 𝑝𝑟𝑖𝑐𝑒. Why? Let’s look at the reality: Amazon is a fiercely competitive marketplace. If you think you can win by simply having the lowest price, here’s what will happen: 1) You’ll crush your profit margins. 2) The customers you attract with low prices will jump ship as soon as they find a lower one. And business isn’t a joke. Every strategy needs to drive profitability. If you’re acquiring customers but losing money, what’s the point? So, how do you create a pricing strategy that pulls in customers while protecting your bottom line? The answer lies in using pricing tactics strategically: ➤ Dynamic Pricing Adjust prices based on demand, competition, and inventory levels in real-time. (Pro tip: Use tools that track real-time ASIN data. Here’s one to try: https://t2m.io/ZC5KWuye) ➤ Psychological Pricing Prices like $19.99 instead of $20 trigger the perception of getting a deal. ➤ Competitive Pricing Benchmark against competitors to stay relevant without slashing your profit margins. ➤ Penetration Pricing Start low to capture market share, then adjust as your brand gains traction. ➤ Value-Based Pricing Set prices based on the perceived value to the customer—not just the cost. ➤ Keystone Pricing Double your wholesale cost to set a standard retail price. ➤ Bundle Pricing Combine multiple products at a discounted rate to increase perceived value and move inventory faster. ➤ Discount Pricing Offer temporary price reductions to clear stock or boost sales. ➤ Loss Leader Pricing Price certain products at a loss to attract customers who will make additional, profitable purchases. ➤ Skimming Pricing Begin with a high price and gradually lower it as demand shifts. ➤ Premium Pricing Maintain higher prices to signal exclusivity and premium quality. ➤ Cost-Plus Pricing Add a fixed markup to the cost of goods to ensure a stable profit margin. The key? Leverage these tactics strategically. Every pricing strategy should align with your business goals and attract the right kind of customers—the profitable ones. Let me know if there’s a strategy you want to dig into further! P.S. We’re launching an exclusive program for established brands ready to dominate Q4 with data-driven strategies. Message me ‘QUALIFY’ to see if you’re a fit. As trusted partners of Alibaba and Amazon, we’ve helped sellers and agencies generate over $200 million in revenue. Are you next?

Chinese sellers are flooding Amazon.  US brands are slashing prices to compete. → Here’s why that’s a losing game: You can’t win a race to the bottom.  Chinese manufacturers now dominate Amazon’s top sellers. Over 50% of them. Read that again. Over 50% of them. They sell direct and undercut prices. US businesses? They’re stuck: ✗ Lowering margins ✗ Firing staff ✗ Praying for scraps Price wars destroy value. Competing on price turns your product into a commodity. Customers see no difference between you and the next guy - how could they?   Margins vanish. Innovation dies. Jobs disappear. The alternative?  ⤷ Build a brand that’s worth more. Value isn’t about being cheaper.  It’s about being better. Apple charges premium prices because they sell an experience. ✓ Not just a phone. Starbucks doesn’t compete on $1 coffee. ✓ They sell community. Winning strategy?   1. Double down on what makes you unique.     - Solve a problem competitors ignore.     - Share your story. People buy why you exist, not what you sell.  2. Own customer loyalty.     - 65% of buyers pay more for quality..     - Invest in service so good they’ll never risk a cheaper option.   3. Educate, don’t just sell.     - Show how your product transforms their life.     - Use carousels, videos, and case studies to prove it.  You don’t lower prices.  YOU NEVER lower prices. You elevate value.  Play the long game. Build a brand people want to pay for.  -BB  P.S. The $4.75B annual tax gap from foreign sellers? That’s a problem for politicians. Your job? Make your brand impossible to ignore.

Why do they say "never compete on price"? Because it prevents you from doing something better – and much more profitable. Here's the mindset — When you compete on price, you surrender being different from your competition in more important ways. It says: “Yes, we offer the same thing as our competitors… but we’re cheaper.” And sure, you’ll win some customers that way. But when someone cheaper comes along, they’ll drop you in a heartbeat. — So what do you do instead? Smart businesspeople try to compete on value — that is, the benefit the customer gets for the price they pay. Let's say you're selling clothing and have a fictional company called "Nordstrom." Rather than try to sell brands for the cheapest, you offer a no-questions-asked return policy and the best-trained salespeople in the world. You're selling the same product, but your value is much higher. So, you get to charge more -- and maintain better margins. — So the next time a customer complains about your prices, retrain your automatic reaction. Don’t lower the price. Instead, offer more value. This can be anything from extra service ("we'll visit you to help make sure it's installed correctly") to a better sales process ("we have a 1-page no-nonsense contract"). We did this with Hire With Near— they’re not the cheapest staffing agency. Instead, they became niche experts in Latin America, with boots on the ground and rigorous vetting. Get your whole company in the value mindset. Offer more, don’t ask for less. Thoughts?