Is price No.1 consideration for customers? low price competitor issues

[chinamv]

Dear all,

I running a computer service business here in china, provide professional IT service with English. But i found recent there is some other chinese companies started similar service with a very low price, about 50rmb for a computer repair, it is too low price! so our price is big times than their price( very more expensive).

I do not think 40-50rmb can do what here,it is too low! the problems is both these chineses companies are eating up our business with so such low price!

my question is : is the price only no.1 consideration for customers choose servive? how can i let customer trust they pay more money to choose our service is worth?

Thanks.

[lammert]

Welcome to WebmasterWorld!

And also welcome in the world of competition :) For many consumers, price is an important issue and the internet makes it easy to look for the supplier with the lowest price for a particular product or service.

If the price of your competitor is too low for the services he offers, there are a number of possible scenarios:

1. He has a very efficient service organization and he actually can do it for that price.
   
2. He only has low prices to attract his first customers and prices will rise to normal level once he has enough customers
3. He will go bankrupt
4. He will deliver quality which is comparable to his price. People will start to complain on internet forums practically killing his reputation and customer base over time.

You have to find out which one is most appropriate. If he can deliver these services at much losts than you, you probably also have to make your services more efficient, as there is no other way to compete than with the same quality/price. In the other three situations, just do what you are good at, the problem will disappear automatically.

[dbdev]

you need to add the F.U.D. factor... (Fear Uncertainty Doubt)..

similar to a crown attorney picking apart the credibility of a witness... express the serious risks and implications of a low budget solution as compared to your reliable, superior more expensive alternative.

there are so many ways to put a slant on something...

[vincevincevince]

Break a computer, or find a discarded one which was unfixable. Call some of those companies to fix it, pay them as they advertise. Find out what they are doing, what they aren't doing, and if they have a way to get more money from you.

Here are some more ideas about what they are doing:

Not fixable ... then they sell you a new computer 'at a great price'

Need new parts ... which they overcharge for

Sorry, that's too broken for our standard service ... switch to higher rates (bait and switch)

It will probably happen again (virus, etc.) ... selling a monthly fee for 'checkups'

And some less savoury things they may be doing:

Leaving gifts on the customer system (installing spyware, virus, etc.) to ensure repeat customers with easy-to-fix problems

Causing more damage (magnet to drive, bent pins) so they can charge for a bigger job in order to fix it

Scoping the customer's house or business to identify security features and items of value to later break in and rob them (customers with a PC are already prequalified as targets for theft)... or directly stealing during the work being undertaken

[chinamv]

thanks all guys above, thanks for your suggestion and help, yes, i enter into a competitors' world, much more here in china, the best weapon for grab market is PRICE,CHEAP PRICE, you will found many cheap price products here, even some fake copy DVD,fake famous brand clothes, the price is only 1 reason why they are in market.

i think this is should be a usual problems in every competitors market. i think i should do more further marketing job for my service,i hope customers can trust our service and want to pay for service.

thanks again,all friends above!