The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

If possible to provide an organically lower price for a premium service, is that a problem?

Fightrepreneur

Contributor
May 5, 2018
35
49
99
MJ and others have discussed how "adding value" by undercutting competitor prices is a poor long term business model because it will become a battle for increasingly slimmer margins because of a price war. But what if your business model allows you to make profit while offering the same service at a lower cost than the competitors?

I am starting a service-oriented business that is often offered by other larger companies but isn't generally their main product. I am targeting a niche that I believe is generally priced out of this service, and I believe I can offer a better price/better deal structure because my costs will be lower, as I will specifically be targeting this service.

Is this dangerous long term?
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.


New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Sponsored Offers

Lex DeVille's - Advanced Freelance Udemy Courses!
-- HALLOWEEN SPECIAL STARTS TODAY! Get any of my courses at Udemy's current best price through Friday! Use code: HALLOWEEN Use any of the links...
Top Bottom