What to do as seller in a Competive Market
In highly competive market, the only thing buyers will be judging a good buy on is price. This will make the product or service a commodity. This is becuse the supply is much greater than demand.
In these kind of markets there are three things a seller can do.
1. Sell at the best price they can get, even taking loss.
2. Move to a less competive market.
3. Try to differentiate.
To differentiate your offering you have to be able to make your product or service you must be able to make it unique, rare, or increase its value.
Some ways to increase its value is to add other offerings with it. This may include manufacturing videos describing the process used to make the good. Another offering would be to include instructions and listing of materials to make the goods.
A very good way would be to include a value ladder. In other words have a high ticket item that woud cover any losses for the low priced items.
In a market that is competive be aware that you probably won’t win on price aone. Your competitors may have other offerings that defray the losses. They may also have offerings that do not even compete in the same market. An exampe would be an influencer for power tools. Since they are a infuencer they may be making most of their income from advertising with tool manufacturers. The good they then are selling are just to help defray the cost of manufacturing.