By Stephen Rhodes
Businesses face great temptation to lower their prices during in poor economic times. In recent weeks it seems that everything is on sale or just reduced, or 50 per cent off. Some of it is seasonal, of course, but some of it is desperation. Many businesses will buckle to the great temptation and regret it later.
We all know there is “no free lunch” and “something for nothing” establishes the value of a service or commodity at precisely nothing. If your brand is built on volume and price that’s fine, but if your brand is built on quality and service, reducing your price simply hurts you long term.
Anyone can be cheap but only one will be the cheapest. Is that turf you want to own coming out of a recession? Likely not.
Instead focus on adding value. Talk to your customers. Listen to their problems and be a problem fixer. They are in this downturn too, remember.
Consider their plight. Service their needs. Provide added value, but don’t drop your price. Good value comes at a price. Don’t cheapen it.
What do you think? Leave a comment below.