What do you do if your competitors are undercutting your prices as a Business Relationship Manager?

1 Assess Impact

Before making any hasty decisions, take time to assess the impact of your competitors' pricing strategy on your business. Analyze how significant their price cuts are and whether they affect all or just a portion of your customer base. Understand which of your products or services are most at risk and consider the long-term implications for your profit margins and market share. This assessment will provide a foundation for a measured response that protects your interests without engaging in a counterproductive price war.

2 Value Proposition

Your value proposition is what sets you apart from competitors. As a Business Relationship Manager, you need to communicate this effectively to your clients. Highlight the quality of your products or services, your customer service excellence, and any additional offerings that justify your pricing. Educating your customers about the benefits they receive by choosing your company can often outweigh the allure of lower prices elsewhere.

3 Strengthen Relationships

Strong relationships are your best defense against competitors' price cuts. Focus on personalizing interactions and understanding the unique needs of each client. By demonstrating that you value their business and are willing to go the extra mile, you can foster loyalty that transcends price differences. Regular communication, tailored solutions, and exceptional service can solidify these relationships further.

4 Innovate Continuously

Innovation is key to staying ahead in business. As a BRM, encourage your organization to continuously improve products and services. This could mean investing in new technology, enhancing features, or streamlining processes to increase efficiency. By innovating, you not only offer more value to your customers but also create barriers for competitors trying to match your offerings.

5 Adjust Strategically

Sometimes, you might need to adjust your pricing strategy, but do so strategically. Consider offering discounts or value-added services to select customers as a way to retain their business without engaging in a price war. Bundle products or services to create a more attractive offering. Ensure that any price adjustments are sustainable for your business and are communicated as part of a broader value package to customers.

6 Monitor Competitors

Lastly, keep a close eye on your competitors. Understand their strategies, strengths, and weaknesses. This insight will help you anticipate future moves and prepare accordingly. By staying informed, you can adapt your own strategies to maintain a competitive edge without relying solely on pricing. Remember, as a Business Relationship Manager, your goal is to build lasting relationships based on value, not just price.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?