Do you mind being beaten on price?
Do you mind being beaten on price?
Price can be divisive.
If the price is too high we may react by dismissing it, feeling insulted or laughing incredulously. If the price seems too low we may be spurred into action and pursue it, or we may react suspiciously and need other questions answering, or we may reject the offer dismissing it as incorrect or 'too good to be true'. But in some way, we do react.
Price is a call to action. It says to us: If you have got the money, you can have it -- do you want it or not?
But price is also about relationship.
For some businesses, aggressive pricing is the number one marketing strategy; it's what attracts customers in, and the reason they buy. These customers are attracted to the billboards and advertisements that scream LOWEST PRICES and WE WON'T BE BEATEN ON PRICE.
If you are tempted to try this price strategy you may find it pulls the customers but here are seven other things you may also want to consider:
1) This tactic rewards customers for placing the highest value on price as if price is all that matters. If you have no plans to offer more in terms of quality, service, ambience, creativity, and you wish to disregard the environmental impact, and community aspects, of shopping then go with the 'We won't be undersold' tactic. Otherwise avoid it.
2) Do you want a whole lot of bargain hunters as customers? Are they your target audience? If they are, will there be a large enough population of them to support you as the margins are going to be slim.
3) You giveaway your power to your competitors and suppliers; you run the risk of being manipulated.
4) Don't you want to retain ultimate control over your margins?
5) Can you be bothered dealing with the 'paperwork' and time and transaction costs of refunding money on a done deal?
6) Does screaming low prices at your customers give you the sort of customer, and the type of relationship, you want?
7) What do most businesses do before they go out of business? Answer: Drop their price. What message do you think your low prices imply?
Before committing to being the lowest price provider, ask yourself why are you doing this, and make sure you have a good strategic reason for doing so.
Do you mind being beaten on price - To learn more about this author, visit Jane Francis's Website.
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What’s wrong with ‘We won’t be beaten on price’?
Price can be divisive.
If the price is too high we may react by dismissing it, feeling insulted or laughing incredulously. If the price seems too low we may be spurred into action and pursue it, or we may react suspiciously and need other questions answering, or we may reject the offer dismissing it as incorrect or 'too good to be true'. But in some way, we do react.
Price is a call to action. It says to us: If you have got the money, you can have it -- do you want it or not?
But price is also about relationship.
For some businesses, aggressive pricing is the number one marketing strategy; it's what attracts customers in, and the reason they buy. These customers are attracted to the billboards and advertisements that scream LOWEST PRICES and WE WON'T BE BEATEN ON PRICE.
If you are tempted to try this price strategy you may find it pulls the customers but here are seven other things you may also want to consider:
1) This tactic rewards customers for placing the highest value on price as if price is all that matters. If you have no plans to offer more in terms of quality, service, ambience, creativity, and you wish to disregard the environmental impact, and community aspects, of shopping then go with the 'We won't be undersold' tactic. Otherwise avoid it.
2) Do you want a whole lot of bargain hunters as customers? Are they your target audience? If they are, will there be a large enough population of them to support you as the margins are going to be slim.
3) You giveaway your power to your competitors and suppliers; you run the risk of being manipulated.
4) Don't you want to retain ultimate control over your margins?
5) Can you be bothered dealing with the 'paperwork' and time and transaction costs of refunding money on a done deal?
6) Does screaming low prices at your customers give you the sort of customer, and the type of relationship, you want?
7) What do most businesses do before they go out of business? Answer: Drop their price. What message do you think your low prices imply?
Before committing to being the lowest price provider, ask yourself why are you doing this, and make sure you have a good strategic reason for doing so.
Do you mind being beaten on price - To learn more about this author, visit Jane Francis's Website.
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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