Low-price competition is a serious threat. How can a small business fight it?
A couple of years ago, I took over an online kitchen-supply business that my wife had started with a partner five years before. It was built around a niche product, the Sea Sheller, a tool for opening crabs and lobsters. Recently a large restaurant supplier has started carrying the same product, advertising it, and selling it as a loss leader. If the company is making any profit at all on its Sea Sheller sales, it has to be very small. [Read more…]