Why Getting New Customers For Less May Kill Your Business

Price drops to get a new customer are unlikely to stay secret. Your customer base will demand the same conditions and refuse to buy under the old conditions. The beginning of a downward spiral especially when your competitors are finding out about prices and are forced into the same prices.

Price drops are dangerous as they can kill the margins of an entire industry.
A good rule is to calculate the total cost + a margin to further build your business. And this price area becomes the solid rock bottom you and your competitors operate on.

But what if your competitor tries to eliminate you on prices?
You have to search for customers who are willing to accept your prices as they want to see your business flourish because they believe in its values your competitor with his discount prices will eventually eliminate himself over time as he kills his own profits.

If you remain steady and have a longer breath the problem will disappear by the moment the competitor can spend less and less on outreach as he kills his margins.
He enters a slow walk downhill right into bankruptcy.