The thumbnail version:

  • Competitive pricing has always been difficult in the textile screen printing arena.
  • Under-cutting the competition has been a common practice for decades.
  • Being the lowest price is more often than not bad business.

The full version:

Undercutting the competition, particularly in highly competitive markets such as the GTA, has been a common pricing practice for decades. It’s based on a misguided assumption that unless you’re the lowest price you will not have enough work to stay in business. This is largely nonsense, as has been shown by certain printers who thrived by focusing on quality and service rather than low prices.

So why does this low-price-be-damned strategy succeed when it seems counter-intuitive to so many printers? Well, the answer might lie in an aspect of human nature overlooked by the low-price-brigade. It’s explained by amusing but true observations in a Scoot’s newsletter of a few years ago.

If price is really all that matters . . .

  • Everyone would buy generic drugs.
  • The seat every fan fights for would be the last row in the stadium.
  • Nobody would own a Bose product.
  • Starbucks wouldn’t have pored a single cup of coffee.
  • ┬áThe only food in your kitchen would be supermarket brand.
  • The toilet paper in your bathroom would be single-ply sandpaper.

And I’m sure you can think of many more examples.

There’s a lot more to pricing than being the lowest.