Episode 64: Should I Match My Competitor's Price?
So you got a request for quote, you quoted the work – and now the purchaser is coming back either asking for a price reduction or is asking you to match another shop’s price. Is this something you should entertain, or should you run as fast as you can?
On this episode of MACHINE SHOP TALK, Ian Sandusky from Lakewood Machine is heading back into the Practical Machinist forums (read the thread here) to tackle this scenario put forth by a member.
While every company should be open to feedback from customers and potential clients, there are situations when it comes to pricing and quoting that can be difficult to navigate. At what point does chasing the best price turn into forcing companies to race to the bottom? How do you establish a foundation of trust between you and your customers when it comes to pricing?
What do YOU do if a potential customer asks for a price reduction, or asks you to price match a quote from another shop? Let us know in the comments below
You know the value of your work and your competition knows the value of their work and service; set your standards high!
At some point, price matching becomes a race to the bottom. You have to have enough profit built in to allow for all those “services” that fall outside of normal billing to be met
At the end of the day, all parties need to be happy for the dynamic to be viable over the long haul!
My $02 worth….. for what its worth!