What to do when your competition has lower prices?


#1

Hi everyone, i am new here.

I am creating my SMMA in guadalajara mexico and today I visit 10 agencys here in guadalajara for see what they offer, prices, etc…

I saw that some of them dont even know what is a funnel!!!

They are certified with google ads but really when I spoke to them i got the sensation that they arent experts.

When I asked for the prices they managed, I was very impresed because it was really cheap.

they make me a quotation for 350$ / month for social media management, PPC, fb ads, and IG ads.

Thats fucking cheap!!!

I want to charge MINUMUN 1000$ for my services but with these rates on the market it seems imposible.

I need your opinion!

PD: Guadalajara is one of the most important citys in mexico and some business makes a lot of money. that why i want to charge minimum 1000$


#2

You should try to give the quote to some people and test it out and see


#3

Businesses pay for results. They will pay more if you:

  • Great results they don’t have to worry about. They have so many things they have to do, that providing a great service they need, but don’ have to worry about, takes something off their plate.

#4

I will do it! its the only way to know, thanks man.


#5

You are right, thanks for your respond!


#6

I think it’s also important to understand what that 350 price is for, or who its for and what type of package that is. Is that only for “influencers” who do nothing but Instagram, or are they charging that to bigger businesses that could easily pay more and have multiple social channels?

Personally I’m not involved in any form of client management but from what I’ve seen, people who undercut the market are only hurting themselves. It’s the inverse of greedy landlords who overcharge for rent, which then causes others to raise prices so they can capitalize on what they see others doing, which then in turn causes others to raise the rent, forcing people to continue paying more and more for absolutely nothing but greedy people capitalizing on it.

If only business of selling things worked in the same way :stuck_out_tongue: unfortunately it’s the opposite, everybody under-prices to get the sales, which then others have to do in order to compete, which will eventually drive everyone out of business because it’s unsustainable at such a low cost.

As a video editor and photographer trying to survive, the industry has been destroyed by this. People have now reached the point where they think video and photo stuff should be done for free making it close to worthless as a profession unless you’re right out of college and willing to work for pennies.


#7

Easy on the landlords @ian :joy::joy:

I have a few rental properties and trust me if we could manipulate prices that easily we would - but we can’t. Not sure what country you are in, but here it is very pro tenant. We cannot raise rents more than 2.5% a year - which doesn’t even cover our tax and insurance increase. Don’t forget about the repairs as well. Being a landlord is far from a lucrative business :persevere::persevere:


#8

Ok ok, it’s market dependent not everywhere, just basing that on NYC life so it’s definitely a generalization and not true in all markets. Though that’s a game of popularity driven pricing where demand is always high so it’s ripe for taking advantage and maximum profit. Anyway, back on topic.


#9

Oh yeah NYC I can see that happening for sure due to limited inventory and how much you would need to ante up just to become a landlord.