Manage episode 288595623 series 2594446
A race to the bottom isn’t the kind of race you want to win. By beating your competitors' prices to the bottom, you can ruin your chances of making good ROI. In this episode, Stephen and Rebecca Smotherman go into detail about “racing to the bottom” and discuss some of the best ways to avoid it.
To kick things off, we first look at how racing to the bottom is a sometimes drastic lowering of prices between two or more competitors, until nobody has any profits left on the table. Following this, we look into the multiple reasons Amazon sellers participate in this race and how almost no one wins. We then dive into some of the ways to help you not fall into the trap of racing to the bottom. We explain the importance of knowing the nuances of supply and demand, the need for special tools to track inventory like Keepa, repricing the right way, and, of course, adopting the right mindset. Lowering prices isn’t always a bad thing though, as we also look at various occasions when price-lowering isn’t just a good idea, but a necessity too. To hear more on how you can optimize your prices, be sure to join in today!