IT’S VERY EASY to think that competing on price is the most effective way to go. In fact, competing on price only cuts profit margins, especially since there is always somebody else who will be prepared to undercut you—even if they go broke in the process. It is generally much better, more profitable, and safer to compete on some other aspect, for example on service level.
In many cases, customers are prepared to pay a great deal to be given a top-class service, and nowhere is this truer than in business-to-business markets, where a service failure can be extremely costly.
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