Tips on how to combat competitors’ dumping

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How to fight dirty competitors who do not know how to fight a fair fight, use dumping and other not entirely clean methods? Most entrepreneurs engaged in trade often come up with the idea of ​​attracting customers by reducing prices for goods. Moreover, they do not just want to lower the cost of goods, but use dumping. The popularity of this term is growing. What does it mean? This is the name given to the situation when unsaleable goods are exported outside the country, where they are sold for literally pennies. Both parties to the trading process benefit from this: the buyer buys the necessary thing inexpensively, and the seller gets rid of stale goods.

This is how the term "dumping" is interpreted all high school coaches email list over the world, except for Russia and the entire post-Soviet space. We have a completely different meaning in it. First of all, the actions take place on the territory of one's own country. In addition, dumping is very harmful to the state's economy. No one knows how to eradicate this phenomenon.

We propose to follow an honest path, to work, so to speak, for the future.

So, you can use the following techniques:

Price masking. If a competitor appears who uses dumping without any remorse, never follow his example and do not lower prices. Be wiser. Set an average price that suits you best. For example, a low price is a low-quality product (it is possible that an unscrupulous competitor will have a higher price), a standard average cost is a product of average quality, a high cost is luxury goods. What is the point? This way, you will keep the average price in the store low. You can safely launch an advertisement: "Furniture from a thousand rubles." The average price of the competitor's furniture is 2 thousand. Who will the client come to? Of course, it will later turn out that 1000 rubles is the price of a chair, and the cost of a table is 2,000, a sofa will cost at least 10,000. But now everything is in your hands. Convince the client that you sell high-quality furniture and it is worth it.

Create an organization of those selling the same product. This method can be used by companies that know how to persuade. The gist is this: create an organization (official or not - it's up to you) consisting of your competitors, including the dumper. Discuss the price issue with them and suggest setting price fluctuation limits, i.e. the highest and lowest. The members of the organization must follow these rules. Naturally, the reliability of this method is highly questionable, and only masters of persuasion can use it.

Create package offers. Analyze the behavior of mobile operators or cable TV. As a rule, they develop a package of services, then organize a good advertising campaign and successfully sell these packages. Have you ever wondered why? Many customers are sure that the cost of one such service is very high and it is more profitable to buy another one together with it. Perhaps this method will suit your online store. Please note that in this case it is easier to fight competitors, since it is difficult for the buyer to figure out whose product is more expensive and whose is cheaper.

Plan a temporary price reduction campaign. Don't support a dishonest competitor and enter a dumping war, setting throwaway prices forever. Present it as a planned operation. In your advertising, emphasize to your customers that after some time, the prices will return to the previous level. In this way, you will compensate for the costs incurred due to the competitor's dumping and preserve your reputation. It is quite possible that the customer will prefer your store.

Make your products more valuable. You will have to lower your prices for a while. However, at any opportunity - in advertising, in the process of communicating with the target audience and customers - do not forget to focus on the advantages of buying in your store (better packaging, the ability to return a defective item, warranty service, free delivery, etc.). Analyze the work of your competitor and make their shortcomings your advantages. The main thing is to regularly remind that your product is much better quality.

Naturally, the described techniques will give the desired result only if you sell a higher quality product than your competitor who has resorted to dumping. If this is not the case, the client will still uncover the deception. He may buy a low-quality product once, but do not count on his repeat business. If the quality of the product turns out to be higher than in the "neighboring" store, then the client will not only come himself, but will also bring friends. In other words, he will replenish your client base.