Chances are, you're a relatively new business or company. In this first stage of your business, you are going to want to choose your pricing wisely. Even if you are just making a website for the first time, you want to be confident that your prices are working for you and not against you. Does this mean that you need to find your competition and offer lower prices than them immediately? I don't believe so. Here are a few reasons why I believe it is better to outperform your competition rather than undercutting their prices.

1. It Takes The Pressure Off

Jumping into a business where others are already successful can be difficult. One of the main reasons is that the competition has already streamlined their service to provide lower cost products and services. Since you are new, you may find it difficult to match these prices. However, you are much more likely to be able to match and surpass their level of quality and customer service. Since it is more feasible to do this, it takes the pressure off your bottom line and allows you to acquire customers based on your quality of service. You can always compete on price once you're a little more established but in the meantime, beat them in the quality category.

2. Since You Are Smaller, You Can Pay More Attention To Customers

This will work for you in two ways. 1. You can easily pick up the customers that care about the smaller business feel. 2. You can charge more money and sell more to those customers. The customers that care about the smaller business feel will usually stay away from the larger companies regardless of pricing. This works in your favor because you have fine tuned your product, service, and customer service to treat these customers better than the big company. You will also pick up any customer that may have had a bad experience with the bigger company. Then, when your customers are happy with your service, you are much more likely to sell them more and make more money per customer than your competition.

3. You'll Feel Better and More Confident About Your Business

At the end of the day, you want to do something you can hang your hat on. Being a large company can definitely be a goal but its going to take a certain level of confidence in your business to get there. Giving your customers a great level of quality products or services and charging a fair price will allow you to build your business with loyal customers.

As a new business, you would benefit from beating your competitor's prices. I believe that you would benefit even more from beating your competitors' quality. Consider this advice when settling on pricing for your products and services especially when building a website.

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