Brand Strategy  ·  Creative Business

The Cheap Competitor Myth

Why creative businesses fixated on low-price rivals are asking the wrong question entirely — and what the most durable brands do instead.

Essay  ·  May 2026
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The Cheap Competitor Myth

very few months, the photo booth industry goes through the same ritual. Someone posts a screenshot of a competitor charging $300 for a rental. The comments roll in. People lament the collapse of the market, pine for clients who appreciate quality, and wonder aloud how "real professionals" are supposed to compete. Then the thread fades, another one appears the following week, and the cycle begins again.

They are not.

Low-price competitors have existed in every creative field for as long as those fields have existed. They always will. The businesses that endure are rarely the ones obsessing over what someone else charges. They are the ones focused on building something people actually want to buy — and understanding, with precision, who that person is.


Two different conversations happening at once

Most pricing anxiety in creative industries stems from a category error: the belief that all buyers are competing for the same thing. A photographer charging $500 for a session and one charging $5,000 are not, in any meaningful sense, operating in the same market. The clients are different. The expectations are different. The buying decision is structurally different.

Research on brand positioning confirms this. 1 When consumers believe the available options are all basically equivalent — what marketing scholars Marco Bertini and Luc Wathieu describe as a "commoditized" psychological state — price becomes the dominant signal.2 But that psychological state is not fixed. It is shaped by how businesses present themselves, communicate, and build trust over time. Commoditization is something brands drift into; it is rarely something they are born with.

"Commoditization is as much a psychological state as a physical one. A commoditized market is one in which buyers display rampant skepticism, routinized behaviors, minimal expectations, and a strong preference for swift and effortless transactions regardless of product differentiation."
Marco Bertini & Luc Wathieu, Harvard Business Review

The client booking a luxury wedding experience is making a fundamentally different purchase than someone searching for the most affordable option. They are buying trust, confidence, responsiveness, aesthetics, and the quiet assurance that something important will be handled well. Price is almost beside the point — not because they are indifferent to cost, but because they are not optimizing for it. They already know cheaper options exist. They have simply decided those options are not what they are looking for.

The Waldorf Astoria does not lose sleep over budget motels near the airport. Their customer already knows the cheaper option exists. They are simply not shopping for it.3

The mistake isn't being undercut on price. It's building a business that can only be understood through price in the first place.

Equipment is not positioning

One of the most seductive ideas in creative industries is that better gear leads to better clients. A new camera body, a premium booth setup, a professional-grade editing suite — the implicit promise is that tools signal quality, and quality commands higher prices.

Sometimes this is true at the margins. More often, it produces a familiar trap: the business invests in expensive equipment, the leads stay the same, the inquiries still negotiate, and now there is a monthly payment to service on top of everything else. Lowering prices starts to feel like the only viable option.

The problem is rarely the gear. It is that the business never developed strong positioning in the first place. Clients paying premium prices are not, in most cases, doing so because a vendor owns premium tools. They are doing so because they trust the outcome — and that trust is built through branding, consistency, communication, social proof, and the accumulated experience of working with someone who clearly knows what they are doing.4

Premium tools purchased into an unclear brand communicate almost nothing to the right buyer. In some cases, they actively confuse the message: a business that presents itself inconsistently, responds slowly, and has a generic web presence will not suddenly attract premium clients because the equipment changed. The experience of working with them has not changed.


The race to the bottom has no finish line

If the only reason a client books you is price, a cheaper competitor will eventually take them. This is not pessimism; it is the structural reality of any market with low barriers to entry. There will always be someone newer, someone who does not yet understand their margins, someone running it as a side project, someone willing to work for almost nothing while they build a portfolio. This is as true in 2026 as it was in 1996, and it will be true in 2036.

Research on competitive dynamics bears this out.5 Businesses that countermove on price — lowering rates whenever a cheaper competitor appears — often find themselves in a downward spiral that erodes profitability without actually winning the customer relationships they wanted. The companies that fare best over time are those that compete on a dimension that is genuinely harder to copy: experience, specialization, trust, personality, aesthetic vision.

Most clients do not remember the specifications of your setup six months after the event. They remember whether you were easy to work with. They remember whether you answered quickly when they were anxious. They remember whether the whole experience felt polished or chaotic. These are the things that generate referrals — and referrals are, by a wide margin, the most efficient engine of sustainable creative business growth.

When everything looks the same, price wins by default

There is a subtler problem lurking beneath the cheap-competitor conversation, and it is harder to hear: a significant proportion of creative businesses have become nearly indistinguishable from one another.

Same Instagram captions. Same "luxury experience" language. Same website structure. Same brand aesthetic pulled from the same pool of Canva templates. When businesses become interchangeable, clients do exactly what logic demands — they compare on whatever difference they can actually perceive. And price is almost always the easiest thing to compare.

This is not a moral failing. It is an understandable outcome of a creative economy in which everyone has access to the same tools, the same inspiration feeds, and the same advice from the same marketing influencers.6 The homogenization is structural. Breaking out of it requires genuine clarity about who you are, who you serve, and what is specifically different about working with you — not as a tagline, but as something that shows up at every touchpoint.

The positioning audit.

If a prospective client compared your website, Instagram presence, and inquiry response to five competitors in your market — what would they find genuinely different? If the honest answer is "not much," that is a more urgent problem than whoever is charging $300 down the road.

Clarity as competitive advantage

The businesses that stop worrying about cheap competitors tend to share a few things. They have made deliberate decisions about which clients they want to serve and, equally important, which clients they do not. They have built processes that are consistent and professional enough to deliver a premium experience reliably — not just when conditions are ideal. And they have developed enough clarity about their own positioning that they can stop chasing every inquiry and start attracting the ones that actually fit.

This operational clarity matters more than most creative businesses acknowledge. When the backend of a business is chaotic — inquiries scattered across platforms, contracts missing, follow-ups forgotten, pricing inconsistent — it becomes nearly impossible to deliver the kind of experience that commands premium rates. The client-facing promise and the behind-the-scenes reality fall out of alignment, and clients feel it even when they cannot name it.

Knowing which services are most profitable, which inquiry types convert, and where referrals actually come from transforms a business from reactive to intentional. You stop competing for everyone and start becoming someone's obvious first choice.7


Not every lead is supposed to book you

Perhaps the hardest lesson for newer creative business owners — and one that takes time to genuinely internalize — is that some people are simply not your customer. Not bad clients. Not wrong for wanting an affordable option. Just a different buyer in a different part of the market, with different needs and different expectations.

There will always be clients shopping primarily on price. There will always be clients actively searching for something more. The mistake happens when a business tries to serve both simultaneously, or panics in the direction of the budget tier whenever a cheap competitor appears. You cannot hold a premium positioning while anxiously discounting every time someone else drops their rates. The market reads the contradiction.

Choosing a lane — and building your brand, your processes, your communications, and your client experience consistently around that choice — is what separates the businesses that compete on something real from those that compete only on proximity and price.

The cheap booth is not the problem. It never was. The problem is building a business that can only be understood through price in the first place — one that never gave a client a better reason to choose it.

The businesses worth building are the ones where the right clients were never shopping for the cheapest option to begin with.

1 On brand positioning strategy: Johnson & Wales University, "Brand Positioning: How to Stand Out in a Crowded Market," January 2026. online.jwu.edu

2 Bertini & Wathieu's framework on commoditization as psychological state, cited in: Branding Strategy Insider, "How Brands Can Fight Customer Commoditization," May 2022. brandingstrategyinsider.com

3 On premiumization vs. commoditization dynamics: SevenDots, "Premiumization vs Commoditization: A Framework for Brands," September 2025. sevendots.com

4 On brand trust and premium pricing: Persona Design, "Brand Commoditization: How Safe Is Your Brand?" personadesign.ie

5 On competitive dynamics and price-based countermoves: MDPI Business, "Importance of Competitive Dynamics of Strategic Groups," July 2024. mdpi.com

6 On commoditization of creative services: Whitfield, LinkedIn, "The Commoditization of Creativity and the 6 Factors That Hold You Back," December 2019.

7 On pricing strategy as a predictor of profitability in creative industries: Remeňová et al., "Pricing Strategy as a Leading Predictor of the Profitability in Creative Industry Companies," Strategic Management, October 2023. researchgate.net

1 On brand positioning strategy: Johnson & Wales University, "Brand Positioning: How to Stand Out in a Crowded Market," January 2026. online.jwu.edu

2 Bertini & Wathieu's framework on commoditization as psychological state, cited in: Branding Strategy Insider, "How Brands Can Fight Customer Commoditization," May 2022. brandingstrategyinsider.com

3 On premiumization vs. commoditization dynamics: SevenDots, "Premiumization vs Commoditization: A Framework for Brands," September 2025. sevendots.com

4 On brand trust and premium pricing: Persona Design, "Brand Commoditization: How Safe Is Your Brand?" personadesign.ie

5 On competitive dynamics and price-based countermoves: MDPI Business, "Importance of Competitive Dynamics of Strategic Groups," July 2024. mdpi.com

6 On commoditization of creative services: Whitfield, LinkedIn, "The Commoditization of Creativity and the 6 Factors That Hold You Back," December 2019.

7 On pricing strategy as a predictor of profitability in creative industries: Remeňová et al., "Pricing Strategy as a Leading Predictor of the Profitability in Creative Industry Companies," Strategic Management, October 2023. researchgate.net

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The Cheap Competitor Myth

Why creative businesses fixated on low-price rivals are asking the wrong question entirely — and what the most durable brands do instead.

May 20, 2026

very few months, the photo booth industry goes through the same ritual. Someone posts a screenshot of a competitor charging $300 for a rental. The comments roll in. People lament the collapse of the market, pine for clients who appreciate quality, and wonder aloud how "real professionals" are supposed to compete. Then the thread fades, another one appears the following week, and the cycle begins again.

They are not.

Low-price competitors have existed in every creative field for as long as those fields have existed. They always will. The businesses that endure are rarely the ones obsessing over what someone else charges. They are the ones focused on building something people actually want to buy — and understanding, with precision, who that person is.


Two different conversations happening at once

Most pricing anxiety in creative industries stems from a category error: the belief that all buyers are competing for the same thing. A photographer charging $500 for a session and one charging $5,000 are not, in any meaningful sense, operating in the same market. The clients are different. The expectations are different. The buying decision is structurally different.

Research on brand positioning confirms this. 1 When consumers believe the available options are all basically equivalent — what marketing scholars Marco Bertini and Luc Wathieu describe as a "commoditized" psychological state — price becomes the dominant signal.2 But that psychological state is not fixed. It is shaped by how businesses present themselves, communicate, and build trust over time. Commoditization is something brands drift into; it is rarely something they are born with.

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