The VIth Sense - Why You Shouldn't Lower Prices During These Tough Times
Topics: The VIth Sense Marketing Strategy
It’s hard to resist the urge to lower the prices of your retail products or services during these times, but you must realize that if you do so, you are taking a risk.
Despite eating into their profits, most companies lower their prices, hoping to bring in additional sales and keep their staff on payroll. This tactic may attract bargain customers, but they’ll most likely abandon you once you increase your prices.
So, what do you do? Rather than lowering your prices, develop a way to increase your value. The reason people won’t pay your price is because there’s not enough value attached to the product.
For example, a high-end steak restaurant, rather than lowering their menu prices, should be adding value by delivering a small appetizer compliments of the chef.
Discounting and dropping your prices, during good times or bad, is the penalty you pay when you’re not delivering enough value for the money you’re charging.