Price War Killed My Previous Business

How i learned the hard way 

That low price; should never be the way to get more customers.

Back when i had my pharmacy: the skin pharmacy: i used to think that if i lowered my price: more customers will come. And so: i used to price my products at 5% profit. Yes only 5%! (Even Fresshhhh dropship agents gets 16.6%!) but this was 5%.

And i basicaly lost the price war batle even before i could really join in. The reason; coz i didnt have money to beat the big boys. I never could and i shpuld have known this because the one who missed out are the people i could actually help😖

When i closed my pharmacy and was running it in my head all the time like why did i ‘bungkus’; it was because of this. 

This was the main reason. My profits was low, and finally after minusing all the overheads; i didnt have enough to do anything. Not marketing, not hiring, and forget about expanding.

Heres another thing that happens when you price it too low; you attract price sensitive customers. A price sensitive customers are usually the most ‘leceh’ type of customers (if you run a business you would know what im talking about). 

These are the customers that will suck out your enthusiasm and spirit as an entrepreuner. These are the type of customers who are never loyal to you (as they will go elsewhere if its cheaper). 

And these are the type of customers who you cant even upgrade to serve with excellent service because they really dont care.

So what to do instead? Increase your price! When you increase your price, you are obviously not cheapest in the market; so you wouldnt get bargain hunters, but you will get customers who value you as you. They are coming to you because they choose quality over price.

And you will be much happier as business owner because you have a good profit margin. What to do with this margin? No dont go buying your prada bags and BMW’s. You put it back into your company! 

You buck up your customer service to serve your customer better. You increase your marketing so that more people know about you. You hire more help to expand!

Sooner or later; the business that came in to business for price war is going to suffocate & die off anyways, where do you think the bargain hunter customers are gona go? 

But then again; would you want them as your customer🤔🤔

Not me! 🤣

Take care;

Nisha