The Price Is Our Differentiator
Many people have the false idea that sell a product at a lower cost than your competition enable them to obtain higher profits, thus starting a price war. However on the Internet things are different and the competition is healthy. When there is competition, it means that they are being offered to our niche market products and therefore there is a demand. Then, the fact that there are people in Google AdWords promoting their products is somewhat healthy and is an indicator that there is a live market and a public that is buying. The key here is to position ourselves in a way different from the competition.
Unfortunately, many people believe that the best way to differentiate yourself from the competition is lowering the value of their products, and are thus doomed to commercial death. Because as entrepreneurs, never should we differentiate ourselves based solely by the price of our products. On more than one occasion I’ve met people who sell products similar to my resources at half the price that I am offering them, however, This does not mean me a problem because unlike them, I’ll have a real return on investment, and those who sell their products below market price, late or early, will have to discontinue their campaigns in Google AdWords because they are not being profitable. Google AdWords, through direct response advertising allows measurements of campaigns, know how many clicks are occurring towards a particular sales letter, and how many visitors are becoming customers. In this way we will know if it is suitable to raise the cost we’re paying. Keeping all these measurements, we will retain the profitability of the business, while competition may not continue to defend his campaign in Adwords.
Therefore we do not worry us about competition, this is healthy if all we are selling something legal. In my personal case, I do not consider that it has competition. In fact, all my competitors are all friends and more than competition, we became strategic partners.