In these times of tightened budgets, you may find it difficult to compete with lower-priced competition, especially when you’re selling a premium product at a premium price. Rather than lowering your price, and likely bringing your profit margin down to a dangerous level, a smarter approach in many situations is to make a strong case for the increased value your product delivers. That is, your product costs more because it’s worth more.
It takes aggressive, competitive marketing to make that case, and will probably require advertising and/or promotion to drive home your message about quality. Be prepared to increase marketing pressure: sales letters, promotional mailings, brochures, PowerPoint presentations — and advertising, if appropriate and affordable.
It’s possible that you might be forced to lower your price anyway. But don’t do it without a marketing fight, and only as a last resort.