There’s a great article on this subject that I read several years ago in the Small Business section of The New York Times. Click here to see the full article by Jay Goltz. Many other articles on this subject have been written, but I just thought about this one again because I saw another post by Jay today.
The author did a great job outlining a scenario that may or may not resonate with many of you (I think this applies to a good number of my clients). In today’s market, with money tight and sales down for most of us, what do you do to increase sales? Do you lower your prices or do you take a more agressive approach and advertise more?
If you have a good business and offer a valuable product or service, then you shouldn’t have to discount that below market prices in order to increase your sales. What you need to do is market your business and your products and services more or differently OR both. The amount you advertise or the particular channels you choose to utilize will vary based on the product/service you are selling, but the idea is to attract new customers and to do that they have to know who you are, what you’re selling, where you are, why they need your product/service, etc…
The easiest solution (lowering prices) isn’t always the best one, in fact, it’s often the worst one.