Final answer:
To save a sale when a customer finds a lower price elsewhere, emphasize your store's value proposition, and educate the customer on the advantages of your product and services. Managing a small firm entering a monopolistic market requires consideration of potential responses from the monopolist.
Step-by-step explanation:
How to Best Save the Sale
If a customer mentions they can get the same item at another store for less, and your store does not price match, you can still attempt to save the sale.
As referenced in Chapter 8, lowering your prices or raising them in response to competition can lead your business to lose sales. Instead, focus on reinforcing the value proposition your store offers. Highlight the benefits of purchasing from your store, such as better customer service, convenience, quality assurances, return policies, or other value-added services.
Considering the potential buyer may have imperfect information, educate them on the quality and reliability of your product. Share customer testimonials, product guarantees, or any unique features your product or service provides that justify the price difference.
If you're managing a small firm considering entering a market dominated by a monopolist, as suggested in Chapter 8, reflect on how the monopolist might react to a new competitor. Will they lower their prices, improve their services, or take other actions to maintain their market dominance? Weighing these possibilities is critical before proceeding with such a business move.