How to compete with peers? How to win if the price between peers is too low in business?

OneE-commerceThe seller asked netizen J that he has been selling for several years now.Then the profit margin is only 5%.He envied a friend of his who sold a variety of products 10 times his size.He asked netizen J if he could become this peer, which is his goal.

How to compete with peers?

Netizen J probably understands that his peers are still relatively strong, mainly due to operational capabilities, but also sells some highly competitive standard products.Therefore, he said, he should improve his operational capabilities and then compete with his peers for these standards.

Netizen J asked him: Do you know the profit margin of your peers?He said that his profit must be high, because products costing more than 100 yuan sell for more than 200 yuan.

Netizen J said: Have you analyzed his advertising costs?There was no analysis, he said.

That is, you don't know his net profit margin at all?After being silent, he said, but his operation can get more than 100 million, and he must have made a lot of money.

Netizen J asked him: Does his operation and management business exceed 4000 million sales (multiple stores)?he said yes.Netizen J said: This is very common. 4000 million sales are annual salary.But that doesn't necessarily mean that 4000 million sales have to be highly profitable, it could be 400 million.

How to win when the price is too low among business peers?

Netizen J continued to tell him: it is necessary for you to anchor his study, but this does not mean that you have to compete with his products and him.His 10% net profit margin may have been optimized for three years.If you competed directly with him, you wouldn't hit a 10% net profit margin in the first place.Maybe it's better not to lose money in the first place.However, if the opponent takes defensive measures at this time to reduce or increase the priceWeb PromotionYou will lose money for the delivery cost.

Netizen J continued: For example, as long as ourInternet marketingThe operations team has won a market, and our peers usually have a hard time grabbing us directly because we will suppress the market's profits through advertising.Make it almost impossible for peers to come in.

If you really want to do well, it's not about competing with him, don't think about competing with a much stronger opponent, because as long as the opponent doesn't rest, you have no chance.

We should choose to differentiate with him and win the differentiated market.If there is no differentiation in the current market, or if you cannot find a differentiated market, it will be difficult to enter.Unless the opponent does not defend.

How can peer competition win each other?

Study the profit margins of your peers and decide whether to follow?

• If your peer's net profit margin is less than 10%, don't follow, otherwise you will earn very little profit.
• To pay attention to changes in the market, market changes resulting in differentiation, in order to obtain first-mover advantage profits.
• Don't fight with rivals with strong operations. In the end, there is not much profit and hard work.