The Low-Cost Trap: A Highway to Nowhere
The easiest way to enter a service industry market is to compete on price, but it won’t get you very far. Many small businesses and freelancers figure they have to start somewhere, so why not charge less than everyone else? “We can raise our price when we have a portfolio and testimonials”, they reason.
Don’t do it.Competing on price, especially in a service industry, is a trap. I know because I was there.“But I’m desperate!”I understand. I’ve been there too. But let’s look into this and see where it takes us. After the jump I’ll play out an example of where competing on price can lead you. Then I’ll talk about why we do it and how to avoid it. [continue reading at DrewSkwarcan.com]