Every industry is competitive.  If you happen to be in a new industry with little competition, get ready.  The competition will come soon enough!  As an early entrant in the market you may well have the benefit of recognition, but you will have to work hard to keep that reputation.

The professional services industry is particularly competitive these days.  The barrier to entry is so minimal that anyone can call themselves a consultant and start working.  Large firms compete with smaller firms with low or no overhead.  Small firms compete with larger firms who have larger marketing budgets and greater market influence.

When a lot of competition exists, products and services become a commodity and commodities are sold on price.  This is very challenging for professional service firms who are providing valuable services to clients and yet are forced to compete on price.  As a result, many firms lower their standard rates or quickly offer discounts in order to secure the client project.

How can we maintain or even increase our rates in a competitive market?