A Niche Doesn't Compete on Price Alone
The very nature of a niche defines that it can't and shouldn't compete on price alone. If that was your strategy, you wouldn't be a niche, you'd be a mass-marketer.
Segmentation defines itself in that you have something to offer that someone else 
doesn't. That means that you should be able to offer medium to premium prices for your goods.
If you've done your homework and responded to the things we've been talking about over this series on niches, you should be able to know how to come up with something that commands a good price; or at least high profit margins. Another reason why information products are so desirable.
Another reason you don't have to compete on price is that within your niche and products you're creating to serve it, you should always be coming up with something that improves what you're offering so that your competitors don't simply copy you and then attempt to force you to compete on price. That's a battle most companies can't win.
Quality improvements and new, innovative products keeps you ahead of the game. Be careful through insecurity and poor research that you don't price your products so low that you can't be successful. You should know your market and what they're willing to pay, and price according to that.
Other Niche Marketing Resources:
Topple Barriers to Niche Marketing
Learn how to focus on a niche market
Steps to Finding Your Ideal Business Niche
NicheMarketResearch.com Articles
5 Biggest Niche Marketing Mistakes
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Tracked on: June 14, 2008 10:26 PM | Permalink to Trackback