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Lower Your Prices And Watch Your Perceived Value Plummet
kimhillman | 01 December, 2008 10:07
It's been all over the news - holiday sales are way down and retailers are scared. They're scrambling to try to come up with a solution, and that solution for most of them is to lower their prices.
While this tactic may seem wise, it is not. First, when everyone lowers their prices, who will stand out? The one with the lowest prices. And how low can you really afford to go? Most of the time, there is someone willing to go lower, even if it creates a loss for them.
Second, when you lower your prices it devalues your products and/or services. There are people who are willing to pay a premium, even in tough economic times, to get what they perceive to be the best. This goes for everything from blue jeans to birthday parties.
Instead of lowering your prices, why not add more value to what you offer? If you send products through the mail, you could add more value by offering faster service and free shipping. You could also offer free, no hassle returns. If yours is a large store where the customer comes to you to buy, why not offer them a more personal shopping experience, such as a sales clerk who helps them find just what they are looking for and actually waits on them? Even in stores that in the past have been known for their great customer service, I have personally noticed alot of slacking off. So, if you offer personal service it will be something of value and something that is remembered.
Another thing you can do is offer something to go along with your products that will add value to them. This might be a gift with purchase, or it might be an in pack or on pack item.
Don't devalue your products and services by lowering your prices. Instead, do the opposite. Add value. It will keep your customers coming back.
Up and at 'em!
Kim Hillman
Up & At 'Em Publications
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