A cheaper competitor is next to your product at 7-Eleven. Cut price?
Short answer: Don't cut first. Measure first: compare sales per store in stores where the competitor is listed with stores where it isn't, before and after it arrived. If your sales haven't moved, hold your price. If they have, respond with what a cheaper product can't copy quickly: a reason to choose you that is clear on the pack and in content, being in stock every day, and a pack or price point for price-sensitive shoppers. A permanent price cut is the most expensive response, because the shelf price follows the retail price agreed with the retailer and trade terms already take a large part of the margin.
Step 1: Is it taking your sales?
| Compare | What it tells you |
|---|---|
| Your sales per store, 4–8 weeks before vs after the competitor arrived | Whether anything changed at all |
| Stores where the competitor is listed vs stores where it isn't | Whether the change is caused by the competitor or by something else (season, your own stock-outs) |
| Your TikTok Shop sales over the same weeks | Whether demand for the brand fell everywhere or only on the shelf |
This is the same logic as test vs control stores. Without the comparison, every dip looks like the competitor's fault.
Step 2: Choose a response
| Option | Fits when | Watch out |
|---|---|---|
| Hold price, do nothing | Sales didn't move | Keep monitoring weekly |
| Make the difference obvious | Shoppers can't tell why you cost more | Claims on pack and in content must be true and approved |
| Short targeted promotion | Losses are concentrated in certain stores or areas | Promotions need the retailer's approval; measure after it ends |
| A smaller pack at a lower price point | You lose the price-sensitive shopper | New pack means new costs and possibly a new listing |
| Permanent price cut | Rarely the best first move | Hard to reverse; margin may not survive |
On promotions, see promotions that actually lift sales.
What a price cut costs (assumed numbers)
All figures are assumptions for illustration:
- You make 6 baht per unit at today's price.
- You cut the shelf price so that you receive 3 baht less per unit, leaving 3 baht.
- To keep the same profit, you now need to sell twice as many units.
Few products double their sales from a small price cut, especially when the competitor can cut again. Check your own numbers in the Flowup 7-11 Margin Backsolve.
Keep the price consistent across channels
If you cut on TikTok Shop to fight back, shoppers compare it with the shelf. Subpayanunt describes how price wars between sellers of the same product erode its value in shoppers' eyes. See price gaps between TikTok Shop and stores.
Limits
- The shelf price and any promotion are agreed with the retailer, usually through your distributor; you can't change them alone.
- The buyer decides the category range. Asking for a competitor to be removed is not a strategy.
FAQ
Should we ask the buyer to remove the competitor? No. The buyer manages the whole category. Your case is stronger if you show that your item still sells well per store.
Should we match their price? Only if the numbers still work and you can hold that price. Otherwise compete on the reason to choose you and on availability.
What if the competitor copies our pack design? Making your brand easy to recognise matters even more; see recognisable on the shelf. For legal steps, speak to a lawyer.
Sources
- Subpayanunt, selling price follows the SRP agreed with the retailer; promotions need approval (Thai): https://www.subpayanunt.com/post/how-to-enter-modern-trade-fmcg
- Subpayanunt, price wars and price erosion between sellers (Thai): https://www.subpayanunt.com/post/distribution-strategy-fmcg-thailand
- Subpayanunt, trade-term costs that reduce margin (Thai): https://www.subpayanunt.com/post/modern-trade-hidden-costs-listing-fee
Related guide: Listed in 7-Eleven Thailand but Not Selling?
Get Flowup to help: Listed in 7-Eleven Thailand but not selling? Fix it before delisting
Next step: Not sure where your product should start? Send the Flowup team your product and where it sells today, on LINE or by email.
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