Who wins a price war?

So, while I was discussing pricing regarding a Kamailio support request, the potential client responded with:

we got an Indian company they just asked $10/hr and they have good experience in this field

So, I’m definitely not billing at $10/hour. A good Kamailio tech with experience will be almost 20x that price.

So who really wins on this type of pricing competition? Granted this potential client threw down the gauntlet with an extremely low price — there’s no real way to respond on my end (other than the good, fast, cheap diagram).

Price wars may benefit the customer at first, but there’s no way for a company to provide good, quality service and stay alive while fighting a price war. In the end, the clients, the companies, and even the product reputation suffers.

By Fred Posner

Fred Posner provides VoIP consulting services through The Palner Group and LOD.com. For ten years, Fred helped his wife, Yeni Monroy, run Bearkery®, a family bakery in Gainesville, Florida. The bakery sadly closed during the COVID19 pandemic. Contact Fred at qxork.com.

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