Helping Counter Competitor Pricing Strategies

Services

Competitive Intelligence

Challenge

Our client, a global transport and logistics player, was losing cargo market share in several Latin American markets. Specifically, they were losing high volume contracts to lower cost competitors. They regularly compared their pricing with local competitors and maintained competitive parity and therefore did not understand why they were consistently losing large contracts.

Approach

Americas Market Intelligence (AMI) mystery-shopped the competition with the help of local companies in each market. Unlike typical mystery shopping efforts, we entered a series of protracted negotiations in search of the competition’s bottom price.

Result

We discovered that the competition was willing to discount by twice the percentage rate as is typical in the industry. Such a pricing strategy, although uncommon in cargo logistics, is the norm in certain Latin American countries.

In response, our client began to recalibrate their pricing approach and focused their sales message on service and reliability variables where they consistently came out ahead of competitors.

By stretching their discounting policies on large clients and shifting their value proposition, they were able to slow and even reverse their loss of large clients.

Client Benefit

AMI uncovered competitors’ pricing strategies and was able to help the client to adjust its own pricing in order to regain market share.

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