Stop Cutting Your Prices

Originally posted at Cirillo Hooper & Company


Nobody wins in a price war. In fact my brother put it quite well when he said, “It is a race to the bottom.”


Photography and fitness are classic examples that I have been interested in. They are both “lifestyle” professions where you get to do what you love for a living. The only problem with these businesses is that it is very crowded in the market place, and the first thing n00bies in the market place do is start slashing prices. I’ve seen both personal trainers and photographers charging $20 an hour, it makes me cringe.

So how do you compete in an industry where differentiation is difficult, while your competitors are slashing their prices? First, don’t cut yours. Second, find a better competitive advantage. Stop being all things to all people. Yes the market share is smaller, but it is also much easier marketing when you know your niche is and who your target market are.

Successful photographers and personal trainers I know niche themselves either by service or by sector or by both. For example you may be a wedding photographer, or you may be personal trainer dealing only with football players or you may be fashion photographer dealing only with models. You can command a better price for your services because you’re seen as an expert in your field.