Don't just sell based on price
Anyone who commoditises their product - including their labour -and sells based on price is on the road to nowhere. The only viable plan is to sell on increased value.
If you commoditise then the following happen:
* You re-enforce the idea that you're cheap and should be classified with, and compared to, the low wage nations.
* Anyone with an ounce of ability and motivation sods off to some industry where they can rub shoulders with peers. Low ability/low income becomes a self-fulfilling prophecy.
* The game only lasts until someone else undercuts you.
Quality on the other hand does exactly the inverse:
* Quality engineering and services are more valuable. They work out cheaper in the long run due to better time to market, better reliability and less down time.
* More attractive to higher quality staff.
* You can charge a premium for the extra value.