Snidely Whiplash
Recycles dryer sheets
- Joined
- Apr 12, 2009
- Messages
- 206
Curious how some of the business people here may have handled competition that was able to operate at lower price points? Maybe there is a business owners forum I dont know about?
I have a business idea (sale of a commodity) that I believe I can be profitable and successful with that has one single retailer in my nearby area.
The issue is that this particular retailer has 5 other locations in the state and I know I can operate profitably at a lower price point but I couldn't operate at a loss for an extended period of time, which I assume the current business can do by relying on income and profits from the other locations if they were to decide to undercut me drastically on pricing (subsidizing the loss at one location with profits from the others).
Is there an answer to be competitive in this scenario?
.
I have a business idea (sale of a commodity) that I believe I can be profitable and successful with that has one single retailer in my nearby area.
The issue is that this particular retailer has 5 other locations in the state and I know I can operate profitably at a lower price point but I couldn't operate at a loss for an extended period of time, which I assume the current business can do by relying on income and profits from the other locations if they were to decide to undercut me drastically on pricing (subsidizing the loss at one location with profits from the others).
Is there an answer to be competitive in this scenario?
.