I was speaking with a client recently who lost out on a bid for a new customer. His industry has pretty straight forward pricing so, for the most part, the only variation on pricing between competitors is in the profit margin. The industry standard is 10% so to offer a lower price than a competitor it means reducing this profit margin. Most often, the decision by the customers is made based on timing, customer service etc.
This client lost this potential customer to a competitor who bid 28% less. He knew there was no way to match this bid without losing money so he just accepted the loss of the potential customer and moved on. A few days later, he received a call from the lost customer complaining about the competitor. It ends up the reason for the lower bid is they weren’t offering the same services.
Make sure when you are looking at various options you are comparing apples to apples and not apples to oranges.
Also, make sure you make it as easy for your customers and clients to make an informed decision making proper comparisons.
Have a great day!