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socks and cat

Not sure what to do

Three of my competitors offer pole parties also. Two of them have dropped their prices and offer their parties for less. I will have no way of knowing if this will cut into my sales until the wedding season starts next month. So I don't know if I should lower my prices also. I know my parties are worth what I charge. My clients all leave VERY happy. But some one shopping online for a pole party doesn't know there is a difference in the level and quality of our services. They just think a pole party is a pole party and may go with the cheapest service.

Comments

Oh, and to answer a specific thought you mentioned:

Don't drop your prices yet just because they dropped their prices. Once you go down, it's hard to raise them again.

Make sure you are positioned as the Quality choice and keep your prices as-is.

Wait and see how the Bridal season works out. If you are positioned properly as the quality school, you should do OK.

But, unfortunately, you have no way of knowing for sure if you will lose business to the cheaper competitors until you actually see how bookings go.

Sticking to your current prices *is* a risk, but is probably the right choice. Why give away money when you don't know for sure that bookings will go down?

If it comes to that, take the one-time hit for any lost business to the cheaper competitors and then lower your prices. But, if you lower them pre-emptively, you'll take the loss without knowing for sure that you needed to do so.