Pricing yourself appropriately
A common mistake made by many new market entrants is the use of price as a selling point; with these entrants trying to undercut the competition and then falling into the trap of not being profitable enough to justify the effort, or even making a loss. Sun Tzu, a military strategist whose philosophy is studied by industry leaders, wrote:
"The general who wins a battle makes many calculations in his temple before the battle is fought." | ||
| --Sun Tzu, The Art of War. | ||
Like the generals who win on the battlefield, smart people fully evaluate the field they operate within and identify the position they hold before concluding the type of pricing strategy to use. Understanding the market environment in relation to your own attributes opens opportunities to identify to target your products and services at spaces occupied by little or no competition. Described thoroughly in the book Blue Ocean Strategy, these spaces in the market are opportunities for you to establish yourself...
