I watch a show called "The People's Court" and the judge, Marilyn Milian, has a saying: "The cheap comes out expensive". She uses this line when she has litigants that go with a cheap contractor and end up having to get the work re-done all over again because things fell apart very fast, because of shoddy work, or the work was just not finished. Usually the fix is a lot more expensive than if they just went with the correct contractor at the correct price, because they have to tear down what was done before they can rebuild.
Why am I telling you this? Well recently I keep hearing that our competitors are charging less than we are, and yes it is true. This is the only way they can compete and as I stated in my article "Competition and Price Wars", this does not work unless you have a comparable product; they do not. Our price is set at the correct price point for the market and to sustain our business and the product. Our competitors do not have a sustainable model and they have an inferior product.
Here is what someone emailed me recently "About a year ago we purchased a product called [competitor] but are having some issues with it that we are currently working with their tech support on. I provided the quote for AutoSwitch to my supervisor as an alternative". The price quote request came on Feb 02, 2012, the above info came on March 1. So for over a month they have an open issue that hasn't been resolved. Wireless AutoSwitch works, and all issues are solved very very quickly. We do not have any open issues. We have over 350,000 installations worldwide and get about 3-4 support request per month and 95% are solved the same day and most within one hour. You can reach us very easily, our email address and phone number is on every page of our website, in plain sight, not hidden.
We have one competitor that charges a very low up front price then charges a sliding scale of maintenance costs over the next few years. We have never charged for support or maintenance and in this kind of product it doesn't make sense; it is just a clever scheme to make it seem like you are paying less, but in the end you are paying the same thing for an inferior product. We have consistently added features, made modifications, and fixes as needed, without any additional charge.
In the end you always get what you pay for, so get the right product and save your self the future trouble.
Competition is good for both a business and its customers, especially for the customer. Competition drives a business to innovate and work harder to get and keep customers. Competition allows customers to get the best price and product for their money. So for the customer it can be great, but not always for the business that cannot compete. A business that does not innovate and continue to compete will soon go out of business and well this is not good for them or the customers (it removes a choice).
Then there is the price war. This is where companies drop prices as a method of competing; this is designed to draw customers away from the competitor. Sometimes a company makes a drastic drop in price to try to corner the market or just get back in the game. This only works if both companies are on similar ground with similar products. If the product was not competing well before because it just didn’t fill the customer’s needs, then no amou ...
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