The most characteristic conditions of non-price competition

[subornaakter20]

Small and medium businesses whose prospects of outbidding market leaders in price are minimal. For small businesses, trying to get ahead by offering even lower prices can end in disaster: current resources will not be enough to compensate for the losses.

A market with a small number of participants who have a good understanding of each other. If one of them lowers the price, the others will do the same, and as a result, all producers will lose profit. Most companies are aware of this and adhere to a specific price range. It is possible that organizations come to an agreement and determine a minimum price value that cannot be reduced.

There is a worthy competitor on the taiyuan mobile phone numbers database market that creates its image thanks to a low price. As a rule, this is a serious brand that other companies can surpass only due to non-price factors.

Applications of non-price competition

A shortage of goods caused by increased demand. If there are fewer goods left than all those who want to buy them, the price does not matter - they will buy it anyway.

The company has invested heavily in developing and promoting the product or is spending large sums on its production. If the price is reduced, the costs will not be recouped and the enterprise will become unprofitable.

Luxury goods trade. It is basically impossible to create an attractive image here due to a low price. Buyers are not interested in the cost, they pay attention to the appearance, quality, prestige, exclusivity of the goods.

In the market, the state exercises control over the price level in one form or another, using various regulatory instruments. This means that companies cannot set low prices by law. At the same time, price competition can exist, but only indirectly (promotions, discounts, release of new models with advanced characteristics, but at an attractive price).