This seems to be a very common occurrence in our industry, unfortunately. But what can you do about it? You need to educate yourself on strategies to combat the issue. It’s very hard not to devalue your own product when you see this happening so often but remember…if you lower the price of your own product to match the undercutter when you know is priced properly for it’s worth – you’re going to continue the cycle of driving down the market.
Stick to your guns…if you know your product is of the highest quality possible, those that want quality and the longevity of a quality product will choose “quantity over quantity.”
Quoted from the article: “A useful approach to overcoming a low-*cost competitor without sacrificing profits is to shift customer perceptions about your product away from money and onto value. In today’s economy, consumers are more budget-conscious than ever before, but they may continue to spend on your company’s offerings depending on their perceived value of your product or service.”There will always be people who will just go for a bargain versus quality and there will always be undercutters trying to devalue the market for a quick buck. Be steadfast and always price for what your product is worth!
More helpful advice in THIS article.