It's a common misconception that the distributor with the lowest price is going to be the toughest competitor. But if that were true, why does one local hamburger joint with pricey burgers need to call in the local police every day for crowd control?

The issue of pricing and how to set the best pricing strategy for your market goes beyond a mere business discussion. It's an emotional issue. Time and again, we hear distributors talking about the comeptitor in their market that's "killing" them by forcing prices down.

Is it true? Is price the real reason why people give you their business? Is it the only reason? Or for that matter, is it the most important reason? And finally, what should you do when somebody starts cutting prices in your market area?

To gain some insights on these questions, we decided to do a quick pricing study in our area. The results are surprising. And yes, they apply.

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