With all of the “daily deal” sites taking over our email boxes, it’s no wonder we’re always considering this idea of competing on price. Almost without exception**, my view of slashing prices is this: Don’t DO it!
In my experience — and that of my clients — slashing prices trains your clients to come to you ONLY when there’s a sale. It also attracts the deal seeker, otherwise known as the cheapskate. Never good.
So, for those of you still thinking that I’ve lost either my mind — or, alternatively — my connection with reality, I’ve composed a two question “TEST” that will help YOU decide whether or not YOU should be competing on PRICE.
1) Can you be SURE — or, are you WiLLING to be sure — that you are the absolute CHEAPEST option your target market can find?
Now, most people will say, NO. They aren’t willing to be the ABSOLUTE CHEAPEST option. I mean, how can you compete with those big box retailers and on-line giants? Okay, then… you’re right. So, let’s move on to question TWO:
2) Is there ANY VALUE AT ALL in being 2nd cheapest?
The answer, always, is NO.
**There ARE some ways to use discounting… BUT — discounting is like a loaded gun. Use it with extreme caution and even MORE strategy.
