Tactics to avoid lowering your prices - KCBD NewsChannel 11 Lubbock

Tactics to avoid lowering your prices

Posted:
By demonstrating the added value you give customers, such as superior customer service, you may be able to justify higher prices. (©iStockphoto.com/Jacob Wackerhausen) By demonstrating the added value you give customers, such as superior customer service, you may be able to justify higher prices. (©iStockphoto.com/Jacob Wackerhausen)
 

Many small businesses find themselves feeling pressure to lower their prices. It may come when a low-priced competitor shows up in your market, or when a pinched economy hits your industry. Yet few small businesses can afford to get themselves involved in a price war.

There are a handful of times when dropping prices makes sense; for example, when your cost of doing business has dropped and you want to pass along these savings. But if your existing prices are set to cover expenses and necessary profits, lowering them could damage the bottom line. What's the answer? Consider using these tactics to attract and retain customers without getting out the red pen.

Emphasize customer service

By demonstrating the added value you give customers, you may be able to justify higher prices while keeping the competition at bay. You can showcase superior customer service through generous return terms, longer than average warranties, free delivery, express ordering for regular customers, or other customer care techniques. This tactic is more strategic than getting into pricing wars with competitors because it encourages long-term client relationships. Competing on price often leaves companies catering to fickle customers who may or may not return in the future.

Package products and services together

You can create more value for customers by grouping related products and selling them for a price that is greater than any single item, but less than it would cost to buy each one separately. For example, a bookseller might package elegant pens with journals or a dictionary with an atlas and thesaurus. This tactic can help you avoid permanently reducing prices on any single item while increasing your overall sales.

Decrease amount along with price

If you find the market is demanding lower prices, consider whether or not there is a way to offer goods and services in smaller amounts. For example, if you're a Web designer, are there efficiencies you can build into the project development process that would allow you to offer services at a lower cost? If you sell beauty supplies, can you package products in 6.5-ounce containers rather than 8-ounce? This tactic can give customers the perception that you've lowered prices while helping you to keep costs in line.

Add services

Instead of cutting prices, maintain them and include an additional service for the same amount. For example, a bookstore owner might offer free gift-wrapping with each order, or a personal trainer might offer an hour of nutrition counseling with the purchase of 10 sessions.

Copyright (c) 2010 Studio One Networks. All rights reserved.

INFORMATIONAL DISCLAIMER The information contained on or provided through this site is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional financial or accounting advice. Always seek the advice of your accountant or other qualified personal finance advisor for answers to any related questions you may have. Use of this site and any information contained on or provided through this site is at your own risk and any information contained on or provided through this site is provided on an "as is" basis without any representations or warranties.
  • Medical Network- Laser Hair RemovalMore>>

  • American Laser Centers- About Us

    American Laser Centers- About Us

    American Laser Centers offers the best energy-based laser hair removal treatments available, combining effective laser hair removal technology with versatile & safe radio-frequency therapy.
  • Laser Hair Removal - Information

    Laser Hair Removal - Information

    American Laser Centers offers the best energy-based laser hair removal treatments available, combining effective laser hair removal technology with versatile and safe radio-frequency (RF) therapy.
  • Laser Facial Hair Removal - Information

    Laser Facial Hair Removal - Information

    Unlike other parts of your body, your face is exposed to the world in every season and every situation. That's why unwanted facial hair can be a constant source of annoyance and irritation, and why laser facial hair removal is such a popular procedure at American Laser Centers.
  • Skin Rejuvenation - Information

    Skin Rejuvenation - Information

    American Laser Centers' unique Skin Rejuvenation Protocol combines the revitalizing effects of our energy-based skin rejuvenation system with the gentle exfoliating properties of Microdermabrasion to offer you safe, comfortable and effective skin renewal.
  • Skin Tightening

    Skin Tightening

    Sagging skin and wrinkles on your face are some of the most obvious signs of age. Until recently, the only ways you could fight the effects of time on your facial appearance involved injections or surgical facelifts, with results that too often resulted in an obvious, unnatural appearance.
Powered by WorldNow

5600 Avenue A
Lubbock, TX. 79404

FCC Public File
publicfile@kcbd.com
806-744-1414
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KCBD. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.