Competing on Price With Large Retailers
One key issue when making a purchase is the price. Being a smaller business means you can’t get the same price as chain stores because they purchase large quantities, therefore securing better pricing. You can control the retail price on your end. Here’s one example of how to do that.
You, as a small business owner, can make exceptions, while the large businesses can’t. You can cut your price on one item while making your profit on another.
Although large businesses do this on some scale, they can’t do it as quickly as you, and they can’t do it for one customer and not for another. They have layers of approvals to go through; you can do it on the fly!
For example, you could go under the wholesale cost of a new computer by $100, and you could make your profit on a service plan that will cover the loss on the computer.
Another approach is to get creative with packaging items together, package deals! For example, offer a computer, and a free printer with free installation when you sell an extended service plan.
Here’s an Example of What Jack Did:
Jack owns a small computer store in the city. He took out an ad in the paper and offered a brand-name computer that was $100 below any other advertised price.