When sales are in a slump, one of the most tempting approaches businesses take to increase revenue is to cut prices. If you fall for this tactic, it’s time to realize that you are not only discounting your customer’s appreciation for the value of your product, you are also discounting the industry as a whole. It simply doesn’t help anyone.
Once you’ve lowered pricing expectations, it’s extremely difficult to increase them again and expect your consumers to jump onboard without feeling cheated. It’s simply not enough to tell people that all of a sudden your product or service is now worth much more. The damage has been done.
Let us not forget the poor saps who bought into your product at its original higher price, and you repay them by giving new customers a big break. Heads are gonna roll!
As an alternative to this seemingly inviting noose, instead, think of ways to add more value and benefits, such as gifts and ways to recognize your customers. You’ll build more brand loyalty by showing appreciation, and it’s far more cost-effective than discounting and losing customers.
There are plenty of creative ways to attract and maintain customers while preserving your brand’s value. Naturally, industries vary, but whether you create enticing packages, adjust your communication strategy, or target a particular demographic, there’s always a niche waiting to be discovered.
Have you witnessed any discounting disasters? What about creative ways businesses have increased sales without discounting? I invite you to share your comments below, and look forward to your feedback!