From John SanPetro
Stamping Business Q&A:
How Do I Compete With Someone Who Charges Next To Nothing For Her Classes?
You don't!
The truth is that most stamping business owners undercharge for their classes. The typical response to this is to drop your own prices to match your competition.
This is the worst thing you can do for our business!
If someone is charging a ridiculously low price for their classes, whether they realize it or not, they're digging themselves into a hole. The last thing you want to do is follow them into it.
You should not be the bargain! Don't compete for the bargain hunters. Those customers tend to be the most high- maintenance AND getting them to spend a few extra dollars is like pulling teeth.
Instead, keep your prices where they should be and attract the customer who is looking for quality and customer service. That customer is a lot more fun AND they don't mind spending more money with you.
The bottom line is this: Are you Wal-Mart or Tiffany's?
Wal-Mart has bargain- basement prices and tons of customers.
Tiffany's has high price points and fewer customers.
In spite of their differences, both stores make about the same amount of money per store.
Which would you rather be?
