Question

Topic: Strategy

Counter Competitor's Discount Strtgy In Retail

Posted by chougulechemist on 9/19/2019 at 2:18 PM ET 25 Points
I've pharma retail in Mumbai. Nearby 2 stores give discounts to all customers on medicines. I also give discount but to regular customers. How should I counter attack competitors strategy by giving minimum discounts to customers?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by mgoodman on 9/19/2019 at 2:42 PM Accepted
    The best way to counter competitors whose main thrust is discount pricing is to increase your own perceived value. That way it becomes clear to consumers that "you get what you pay for."

    If you can deliver a benefit that is worth more to your customers than the discounted price of your competitors, they will remain loyal to you.

    This could require a re-thinking of your business, but it is probably worth the effort if the alternative is to cut your prices (and your profit margin).
  • Posted by Jay Hamilton-Roth on 9/19/2019 at 5:39 PM Accepted
    Offer products and/or services that your competitors don't.
  • Posted by Mike Steffes on 9/20/2019 at 10:11 AM Accepted
    What could you offer that potential customers would find some value in? You will likely have to talk with people to discover what additional products and/or services they feel are valuable.
  • Posted by Gary Bloomer on 9/20/2019 at 6:29 PM Accepted
    No. Deep discounting leads to price wars which drive everyone's margins down. Consider offering greater value, or upsells, or cross sells.
  • Posted by Shelley Ryan on 10/24/2019 at 10:05 AM Moderator
    Hi Everyone,

    I am closing this question since there hasn't been much recent activity.

    Thanks for participating!

    Shelley
    MarketingProfs
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Strategy)