Two pieces of advice: don't compete on price AND don't support companies who compete on price.
Both are losing strategies.
Here's a real-life example from the July 4, 2006, issue of The Rocky Mountain News, in which a recycling and trash removal company called ABC Recycling Service, closed its doors without warning.
Thousand of customers who had prepaid for service were abandoned.
ABC Recycling Service charged roughly one third of what most of its competitors charged: about $100 for an entire year of service. Apparently, the company ran into cash flow issues and was forced to close.
Here's an excerpt from the article:
Officials at the Denver/Boulder Better Business Bureau said people need to be careful when using companies such as ABC Recycling, which charged much less than the competition.
"I think this is a case where people thought wow, we can get trash and recycling for a third of the going rate," said BBB spokeswoman Susan Liehe. "People switched to this company based solely on price, and this unfortunately is what can happen."
The article went on to say that ABC contacted other waste removal companies in an effort to continue service for their 6,000 customers, but none of the companies responded.
I'm not surprised. Who wants 6,000 price shoppers who will switch providers at a moment's notice just to save a dollar or two?