In our last episode, we talked about what we can learn from losing business to a low-baller or price-cutter and what we should NEVER learn from those who do business that way. Today, I’d like to address another question I’m frequently asked, which is “How am I supposed to compete with this?”

Discussions about low-ballers and price-cutters inevitably generate lots of comments and questions. One recent discussion generated a response from someone who is not a client of mine who forwarded a flyer from an industry price-cutter. His attached note simply asked, “how am I supposed to compete with this?”

The pricing on the flyer was extremely low. In fact, for all intents and purposes, we might as well have been looking at supplier net pricing.

Many distributors see a flyer like this and panic. But if you’ve ever been in that situation, I’d like to ask you exactly the same question I asked the person who sent me this…

How Much Business Have You Actually Lost to the People Who Put Out This Flyer?

In reality, the answer is probably not much, if any at all.

Some distributors tend to “catastrophize” situations like this. They make the mistake of interpreting an event as an epidemic. Two entirely different things.  One single event does not constitute an epidemic.  But it’s important to understand the difference.


What percentage of your customer base will ever receive that flyer?
Of those who receive it, what percentage will actually look at it?
Of those who look at it, what percentage will actually be in the market for any of the half dozen or so items featured on the flyer right now?
And finally, how many prospects or clients will bother to do a price-shopping comparison on individual items they’re not even interested in?

But the real point I made to the distributor who sent me this message was this:

If Your Primary Approach to Business is Cutting Price and Selling to Do-It-Yourselfers, You’re Doomed Before You Start!

In my video training, I outline the Five Levels of Promotional Products Sales and explain that Websites and Price-Cutters primarily function at the lower levels of Order Taker and Product Peddler.

When you attempt to compete at these levels, it’s easy to see how you can lose. But when you function at the three higher levels — relationship marketer, consultative seller and customer acquisition and retention specialist, it’s no longer a question of how you can compete with these people. The question then becomes, how can they possibly compete with you? If you still don’t get it or if you need help with this, be sure to visit

If you have questions or comments about this topic, enter them in the comment box below and I’ll be happy to respond.

I’m Interested in The Good, The Bad and the Ugly, So Don’t Hesitate to Provide Your Honest Feedback

As you already know, there are hundreds of thousands of products in our industry. Some are excellent, some are terrible and many are somewhere in between. It’s not our client’s job to know the difference.

That’s our job.

If you’re new to the industry and need to get grounded in the essentials of promotional products sales, visit us online at If you need to get clients now with no distractions and no excuses, visit Or, if you’re a smart, focused, independent distributor doing a reasonable volume of sales, join the AIM SmartEQP community today at that’s

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