The below-cost trap: how to hold your price when a competitor won’t hold theirs

In 30 seconds

The Problem: When costs spike, a competitor often cuts price below what it costs to deliver, betting anxious customers will follow the lowest number. Sellers holding a sustainable price feel they’re losing before the conversation starts.

The Shift: They’re not. The response isn’t matching the price, it is asking better questions, acknowledging the customer’s margin pressure, and understanding what they’re weighing beyond the invoice.

The Solution: Build the total cost picture, reliability, service, switching cost, in real numbers, not adjectives. Look for genuine ways to lower the customer’s actual costs. If a discount is unavoidable, trade it for something in return.