Good morning and hopefully you will have a great week for reading this piece today.
First, I would like to state that cutting price is never a long-term solution for the survival of any business.
It’s just a lazy way to do business.
It won’t make up for loss volumes, and secondly, it can actually unnecessarily depreciate the value of your product.
There can only be one lowest price provider in any market and you better be able to be a maniac on controlling cost which is a very precarious position particularly when inflation is in the air.
All the companies, especially luxury product companies, must now move from being market-driven to management/sales–driven.
Remember, the lowest price doesn’t close the sale. It doesn’t get the luxury buyer from their home or office into your store.
Also, the lowest price doesn’t ensure confidence in the consumer’s mind as they wonder about colour choices, sizes, or other considerations that have nothing to do with price.
I recently was trying to buy some suits for my wife and I decided to scout online and offline with various stores that I know.
All of them gave me their price list.
Some discounted, some did not, yet no one made the sale.
Because no one got in front of me to determine that I was on the wrong suit scout.
While most of the stores I approached depended mostly on the internet and of course, the few stores close to my office all had my address and phone number and could have brought me their collection or even call me.
None of them did.
Don’t use price to sell your products, increase the level of service.
While the Suits dealers stayed in their showrooms with too little to do and complaining about low sales both online and offline, I was buying my wife some pair of suits elsewhere instead.
In fact, this place I ended up buying from never for once approached me.
Price is actually a myth and a failed business strategy (unless you’re an internationally known suits factory and have control over the vendors and can return the inventory).
I got into details on this “Price Myth” in my best–selling book, “How To Start A Business Without Money”.
I promise it will change the way you think about price.
Remember; when price is a solution, your people will use it rather than doing what they need to in order to actually earn the business.
Be sales–driven not market–driven and you’ll be able to close more sales, which is the only real solution for the success of any business.