How Manufacturers Compete Against Low Cost

Author: Brian Rhodes, Published on Jul 29, 2014

"I'll take whatever's cheapest" is perhaps the most hated phrase any salesman could hear.

Yet high cost is the biggest complaint of many security buyers.

So how do manufacturers successfully sell against low cost options? We asked a panel of manufacturers:

"How do you deal with low cost competitors, especially very inexpensive ones? What tactics or countermeasures do you use?"

Manufacturers emphasized 3 key themes in how they counteract low cost options.

"*'** **** ********'* ********" ** ******* *** **** ***** ****** *** salesman ***** ****.

*** **** **** ** ********** *********** **** ******** ******.

** *** ** ************* ************ **** ******* *** **** *******? We ***** * ***** ** *************:

"*** ** *** **** **** *** **** ***********, ********** **** inexpensive ****? **** ******* ** *************** ** *** ***?"

************* ********** * *** ****** ** *** **** ********** *** cost *******.

[***************]

  • ****** *******:*** **** ******* ****** ** ******* **** ***-**** *********** ** to *** ****** **** ** ********** *** ********* ** ***-***** ********* their *********.
  • ********* **** *******: ************* ********** ********* **** ****** ***** ******* *****, ***********, and ******** **** ** **-********* *** ****** ** ********** ******** only ** *** ***** ** *** *****.
  • ******** *****:*** **** **** ** ********* **** ******* ** ********** *** risk ** *** ******* ** *********** ** *** ***** ******* are **** ** *** *** *** ****.

** **** ** *** ******** *****, ** ****** ** ***** keys **** ************ ********:

Better *******

****** ****** ** *** ****** **** ****** *******, * ***** that ************* ****** **** ********** ***** ******** ***** ********* *******, warranties, *** ***-***** **********:

  • "** **** ***** *******, ********, ********* *******. ******* ******** ************ can *** ****** ** * ***** ****** *** *** ** these. ** **** **** ***** *********** ********** *** **** ** the ********."
  • "*** ******* ** **** ****** ** * *****- *************, ***********, and *** ***** ***** ***** *** **** ********- *******. *** of *** ***** ******* ******** ******** **** **** *** **** support. ************, **** ******** ** ** ********* **** *** ***** business, **'* * ************ ********. *** ** *** **** *** relationship *** *** ******* / *** *** ********* ***** ** support ** *****'* ****** **** ** *****."
  • "* **** **** ******* ****** **** **** *** ********* **** 2 *** ** * ******: **** *******, **** *******, ** best *****."
  • "#* ******** ******** *** *******."
  • "******* ********** ****** *** ***-**** (*.*. ***-***** *********** ** *********** management ******)."
  • "*********** *** ****** ******* ************. *** ***'* **** ** ** the *** ** **** ** ** **** ** ********** ***** 1-2 ***** *** **** **** ** *** *** ** ** replaced */* *** ******* ** ***** ** *** ** ********."
  • "**** *******, ********, ******** *******, ***."
  • "*********** ********** (* ** * *****) / ** ********* ***** Warranty ******** *********** ********** **** ********** ******** ***** ****** ********* to ****** ***** ****** ***** ***** ******* **** **** * proactive ******** ******** **/* **** ******* ******* ************ ******** *******"

Emphasise High *******

******* ****** ******** ************* ******** ** ******* ********* ** *** superior *********** ** ******** ******** ** ***** ******** ******** ** cheap *******.  ********* ********* *** *** ***** ********** *** ********** of ******-****** ******* ****** **** *** *********:

  • "*** ******* ******** *******' **** ***** ******* *** ******* ********* take *** ******** *** ** *** ****** **** ** **** when ** ***** ** *** **** ***********. ***** ***** **** always ** * *** **** ******* ***** ******** ******, ** is ****** * ****** **** ** ** *** **** ** compete **."
  • " ** ****** ****** ******* *** ******** ********* *** ******* ** the *********** ****."
  • " * ***** ** *** ******** ************, *******, *** ***********."
  • " * ******* **** [*** ****** ****** *****'*] ***** *******, * **** ******** and ****** *********** *** ***********."
  • "** *** ** **** ******** ** ******* *********** *** *** fact **** ***** **** ****** ** ******* ** **** ** cheaper ** *** ******* *** ********. *** *** *********** ****** be ***********, *** **** ** ************ *** *** *** ** home ****** ********* **** *** ***** **** ****. *********** **** there *** **** *** *** *** ******* *** *** ******* control ** ******* *** ** ****."
  • "***** ******* ******* ** *********, ** ** *** *********** ** the ******."
  • "********* ******* *********** & *******."
  • " *********, ***********, ***********."
  • "** ******** ******* ** ** ********** ************ *** *** ************** goes ****** ****** *** ***."

Question ***** (** *** *****)

*** **** ****** *** *** ** ***** *** ********** ** ******** ********* wisely ******* ***** ******** ***** *** ** ********* *** *** margin *** *********** ** ********** ****:

  • "****** *** *** ****** *** ******** - "***** *** *** this ******* ** **** **** ******** ** **?"
  • "** *** ******** ** **** ******* *** *** ***** *** not *********** **** ** ** ******* *** * ********. **** performance."
  • "********* ********** *** ***** ** ****-*******. ***** *****-***********."
  • "**** *** **** ******* ** *** ** **** ** **** a *** *******?  **** **** *** ***** ***** ******* ** **** their ******."
  • "**** ** **** *********** ***** ********* *** ***** *** *******."
  • "* ******* **** **** **** *** ***'* ***** **** *** cost ** * ****** ***** *** ********* ****** ** **, and ** * **** ***** ** *** *** **** ** the ***** ** ***** *** ****, *** ********** ** ***** is ****."
  • "** *** *** ******** ** ****** **** **** ****** **** ****** what *** *** **** ********** ******. ** ***, * **** me *****, ******* ***** ******. *** **** ******* ** ******* without *** ************."
  • "* **** ***** *** *** ************ ** *** *********** ****. Things **** ******** ** **** ******, ********* ******** **** **********, etc..."
  • "***** *** ***** ** *** *** ** *** ******** ***'* only **** ** *** *****. * ***'* *** ** ******* here. ***** *** ***** ** *** ***** *** ** *** spectrum *** **** ***** **** *** ********* ** ***** *******. They *** ******* *** ***********, **** ********** (******* ****, ** thousands ** *******), ****** ****** *** ******* **** *** *** of *** ****** ** ********* *** ******** ** **** ********'* department (*.*. **** **********). ** * *******, ****** ***********, ***** like ***** ************ *** ****** ******* ** *** ***** ******** and ***** *****, **** ******* **** ** **** ******** ** your ********* **** ****** ** *** **** ** *******."

Comments (1)

******* ****** ** ***** ****** ********, ** **** *** ****** cost ** ****, ***** * */***** *** **** *** * ***** ********* ******? *** ***** will ***** ***** ***** ** **** *** *********, ********, ********, training, *****, ************ *** *************. **** ***** ********** ** ****** reliant ** *** *********** ** *** ******. * ******** ****** performance (**** ***** *******, **** ******* ****, **** ******* *******) will ********** *** ****** **********. *** ******** ***** ****** *** themselves ** ** ******* ******* ** ** ** ** *******, even ** *******, ** ***** ********* * ****** **** *** become * ******** ********. ********** ** *** ***** **** ** ownership ** ****** **** *** ******* ****** **** *** ****** service ***** *** ** *** ********* ******** *** ****** ******* rates. ** ****** *** ** *** **** *** * ***** rep ** ***** * **** **** ****** ******* ** *** initial ****, *** ** *** **** **** ********* ********.

* ****** ******** ******** *** ** * ****** ******, **** make *** ***** ***** ** *** *** ***** **** ****, when ** ** *** *** ** ******* ** *** **** why ***** ********* ****** ****’* ***** *** *** ***!

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