Undercutting: how to deal with the tricky topic
In an interview with SignLink the British Sign and Graphic Association’s (BGSA) David Catanach has tackled the difficult topic of price undercutting.
Thursday, 05 Feb 2015 12:20 GMT
Undercutting: it is a tricky subject says David Catanach of the BSGA
The issue is the bane of many people’s lives in the sign and wide-format industries. The scenario being a sign-maker has a regular customer who suddenly starts giving orders to a start-up company operating from home or cheaper premises. So what to do about it?
It is a case of hard work. I always found from my selling days we would always be undercut but customers would come to you because they like you”
Catanach admits it is a difficult one to tackle as undercutting has always been around. He says: “I don’t have the panacea for this problem as we are dealing with human beings and they will have their own foibles and demands. But the closer you get to the customer in terms of your relationship with them, the less of a problem it becomes.
“It is a case of hard work. I always found from my selling days we would always be undercut but customers would come to you because they like you. They like the service and the quality you are providing and if you are given that opportunity and follow that through you are more likely to win business over lower cost because they feel comfortable and safer dealing with you.”
He said there is no easy answer to it and it takes time to build up a good relationship, but someone will always try and undercut you.
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