When low price is your only sales argument

And margins disappear

Do you recognize this situation?

• You win bids only when you're the cheapest
• Clients choose you only for price
• Every quote request becomes a race to the bottom
• The quality you offer isn't recognized or paid for
• You work hard, invoice, but at year end there's no money

---

The trap of price competition

You started competing on price to "enter the market".

It was a temporary strategy: "first we get in, then we raise prices".
But the temporary has become permanent.

Now you're the "cheap" one.
And that's your only perceived value proposition.

If you raise the price, the client leaves.
If you stay low, you don't earn.

You're trapped.

---

What happens when you only compete on price

On the economic front:

• Margins are meager or non-existent
• You grow in volumes but not in profit
• Every unforeseen event (materials, costs) directly erodes profits
• Cash flow is always tight

On the clientele front:

• You only attract those looking for the lowest price
• Clients without loyalty: as soon as they find 5€ less, they change
• Late payments because "you're cheap anyway"
• Continuous complaints, high demands, zero recognized value

On the team front:

• You can't pay well because you have no margins
• You lose the best people
• Those who stay are demotivated
• Quality drops, feeding the vicious circle

---

Why it happens

It's not that you chose to compete on price.
It's that you never built a credible alternative.

When the client asks "why should I pay more?", you have no answer.
Because the difference you make isn't visible, isn't perceived, isn't communicated.

And if there's no perceived difference, the only variable left is price.

---

The (wrong) path many try

Apparent solution: Raise prices and hope clients stay

But if you raise without changing anything else, the client simply goes to whoever costs less.

You can't raise price if you don't raise first the perceived value.

---

The 5-step method:

1. Identify real differentiation
   → What do you do better/differently than competitors?
   → Even small things, but concrete and measurable
2. Communicate value, not product
   → Not "we sell X", but "we solve problem Y"
   → The client pays for the result, not the output
3. Segment the market
   → Not everyone is looking for the lowest price
   → There are those who seek quality, reliability, service
   → Find and talk to them
4. Servitization and bundling
   → Don't just sell the basic product
   → Add services, warranties, support
   → The complete package justifies a higher price
5. Eliminate wrong clients
   → Say no to those who only seek price
   → Free resources for clients who pay fairly

---

What changes after

You no longer compete on price.

You compete on something only you offer in that way.
Clients choose you for value, not cost.
Margins return to healthy levels.

And finally you can invest in quality, team, growth.
Instead of surviving, you prosper.