Cost competitiveness is only half the story

Cost competitiveness determines whether a company can successfully reap the demand for its products and services at a profit.

Becoming more cost competitive is one of the most critical factors experienced by companies over the last few years.

However, high performing businesses have looked outside the box and decided to up-sell and increase their prices, majoring on the value of their service in the market place.

Adopting a low price strategy can weaken small businesses. Exclusivity protects SMEs from falling prices and businesses should value the aspects of their operation which set them apart from competitors.

Pricing shapes customer expectations and unreasonably low prices draws attention away from the product or service’s beneficial value, with the price itself becoming the only reference point.

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