Don't Leave The Best Alone!

Mistake 3

Website redesign and converting to CMS - mistakes to avoid

Price cutting is NOT a marketing strategy – it’s a business death sentence Why do so many businesses start a fire sale? It is just suicide. Seriously, it is. If you have to cut prices to make sales there are a number of questions you should ask yourself:

1) How do you justify your initial, higher price(s) - are you simply charging too much?

2) How low are you prepared to take your prices in order to ‘buy’ your customers business?

3) What do you think your potential customer’s perception of you and your business will be if you are slashing prices to get custom?

4) Do you really want customers who are only interested in getting you or your service for a song?

5) You can never put your prices back up to where they were – assuming the business survives!

There are lots of other reasons/issues I have with price slashing, but let’s take a quick look at each of the above points. Sure, we all want to receive value or a good deal, but most sensible people, your potential customers, will stay away if they see you as desperate by slashing prices.

You only have to look at the high street today to see business after business going to the wall. Did a fire sale save them? All you end up with are the vultures flying in low and picking you off leaving just the bones behind. How much are you prepared to reduce your profit by? 10%, 25%, 50% or more!! We’ve all seen the ads. And is your response the same as mine?

We simply don’t buy into the price slashing idea across the board. Yes there will be some takers – vultures mainly, not valuable customers – and not the answer to generating long term business relationships. Check what your competitors are up to.

 Are they slashing prices in a desperate bid to attract business? If they are, you should be looking more than ever, at ways to increase your reputation as an expert in your field and as a result your value, thus removing entirely the need to reduce your prices to attract customers. You should look to ways of attracting customers who can relate to what you and your business are about and what it can do for them.

Correct marketing of your business will mean that you NEVER have to reduce your prices just to attract more customers. To be clear on this point reducing prices is NOT the same as say offering a 3rd item for half price when buying 2 regular priced. We all most likely have succumbed to such tempting ‘offers’.

This is merely ‘up-selling’ and to be encouraged if used correctly, but slashing prices to ‘gain’ a customer or an order is a road to ruin. I have lots of way to encourage sales to generate cash flow – which is very different to a fire sale. Drop me a line if you want to hear some of them.

Website redesign and converting to CMS - mistakes to avoid