Undercutting the Competition Smart or Risky?
Understanding Your Market Position
Before even considering undercutting, you need a firm grasp of your market position. Are you a new entrant trying to gain traction? Or are you an established player facing aggressive competition? Understanding your strengths and weaknesses, and those of your rivals, is crucial. A deep dive into market research, analyzing pricing strategies, and identifying your target audience will help illuminate the potential benefits and pitfalls of undercutting. If you’re already struggling with profitability, undercutting might only worsen the situation. Knowing where you stand financially is essential.
Analyzing Your Costs
Undercutting only makes sense if you can
