How to Deal With the Price Cutting Competitor
Address by A. E. Voorhies, of the Grants Pass Courier, at the 1917 Session of Oregon State Editorial Association
The subject which has been a constant source of annoyance to publishers and printers in time past may well find a place on the program of an editorial association meeting, inasmuch as the life of trade is vitally affected by the price cutter. Fighting the price cutter in the city and fighting the price cutter in the country requires such different treatment that I will confine my remarks to the price cutter in the country, as we are an organization of country newspaper men.
Now, in the first place, what do you know about the price cutter? What do you know of his business and of his home conditions? Do you know him other than by sight? Do you associate with him? Does he think you are the real price cutter? I have heard discussions among newspaper men when one would denounce his competitor as a price cutter, and a few leading questions would demonstrate the fact that he himself was a price cutter. Then again, there is the ever-present cheap skate customer who peddles his once-a-year job and tells you that your price is high, and that he has been offered the work for less. He may be a liar and in his efforts to beat you down may make you the price cut ter. He, like the devil, is ever present. Beware lest ye fall unto temptation.
In Grants Pass we have a live business organization—the Chamber of Commerce—and every Monday noon from 50 to 75 of the business men break bread together, and like it. We become acquainted with the other fellow, and, while the primary object of the lunches is for help to the city, the individuals who attend are the ones who receive the greatest help. If you associate with your competitor he may learn to like you—in fact you may learn to like each other, and when that happens you are on an equal footing and you will not be attempting to out each other’s throat in a business way.
Don’t attempt or even think that you can get all the work in the town. There is no firm in any town that can get all the work. Accept only the work which pays a profit—let your competitor do the cheap work, and he will the sooner be out of business.
There was a time more than 20 years ago when I needed business and I thought price cutting was the way to get it. I furnished 500 XXX envelopes and kicked them off on a quarter Gordon for $1.00. Business showed a slight increase, or at least I was kept busy, but the proceeds diminished and I soon saw the light—I was gaining an education along that line and soon became an apt scholar. It no longer pains me to see the other fellow get a piece of work for I know that I am not entitled to all of it. I no longer have a price cutting competitor. We have learned that there is about so much work to be had and that price cutting does not develop more, but simply reduces the profits for both of us. I have had competitors who were price cutters but they have gone the way of all other misfits in business—to the scrap heap. While I have competition in the weekly field and also in the job printing, these people realize that they are in business for a legitimate profit and not to fight me.
Price cutting is remedied by edu-
