The 4 Deadly Sins Of Lowering Your price

On April 12, 2012, in Uncategorized, by John Ekonomou

1. Educating Your Market To Buy From You At A Cheaper Price. Ultimately human beings work on patterns. Im sure you’ve heard this before. Its like when you go into the shower you will usually start by washing whatever part of your body that you have made it habit of starting with like your arm […]

1. Educating Your Market To Buy From You At A Cheaper Price.

Ultimately human beings work on patterns. Im sure you’ve heard this before. Its like when you go into the shower you will usually start by washing whatever part of your body that you have made it habit of starting with like your arm or hair. We are deffinatly all creatures of habit.

When a business make a habit of giving a customer a discount every time they come in and then one day that business decides to stop the discount for whatever reason, maybe not making enough profit. Then the next time the customer shops there and doesn’t receive the discount will most likely feel like they have been ripped off. Theres even a chance that the business could potentially loose the customer(s) because they have educated their market to buy at a discount and created an entitlement for them.

I remember years ago I put on a $2 discount coupon in the local paper to get some customers to come in to my restaurant. I realized after about a month of placing the same ad i decided to stop it because that was my profit I was giving away.
After I stopped the promo I had customers coming in 12 months later asking to get the $2 dollar discount. Can you believe that a year later. Customers come to expect it and think that they are entitled.

Sometimes when people open a new business they usually start by discounting their product or service to bring in some new customers. They realize at some point that there’s not enough profit and they stop the discount or the sale. Well guess what? No discount – No business, so then the business owner goes back to giving out a discount to get some business, their screwed. Its like teaching a parrot bad words, and its almost impossible to un train it.

2. Your Creating An Image Of Your Business That Attracts Cheap People And Diminishes The True Value Of Your Offer.
People associate higher prices with higher value. Just imagine a Farrai for sale for $10,000. Immediately the brain says theres something wrong with it. Right? If your constantly offering 10%,20%,30% off or a 2 for 1 you are diminishing the value of your product or service and essentially you are trying to attract cheap customers that only buy when there is a sale. The thing is there are people out there who won’t buy something if its on sale.

3.The Moment Your Drop Your Price You Are Entering The Competition Mindset.

The reason you are in the competition mindset is because your trying to outdo the competition. If I’m buying something because its a good deal, it means that I’ve seen it somewhere else at a less good deal. It means that your marketing your business the same as someone else but cheaper. Your basically spending your hard urned money to get get a really small piece of a pie of price shoppers. Not good.

When positioning a business is not about trying to out do the competition but to be different. So different that when a customer tries out your product or service for the first time it can’t be compared to because they have never experienced it before. A lot of businesses market themselves to be compared to, its like we are all selling apples and trying to convince the customer to chose who to buy from based on price.

It all comes down to personal choice. What do i mean by that? Well ask yourself how many things have you bought because you wanted them not because it was a good deal. A car would be an example. Some people drive really expensive cars and we know all cars will take you from a-b so why did they pay so much? Well because they wanted it. If we can make personal choice the qualifier as to whether the customer should buy something rather than price to buy, then your no longer commoditized, because its based on personal choice.

4.When Lowering price points you end up working more for less.

Costs go up and profit goes down which is what exactly what happens when selling anything at lower prices. Work less make more should be the motto. The bottom line here is when you are marketing your business solely on the price, chances are you are working way to hard for so little returns and thats not fun, I know Ive been there. Move away from being price shopped and find your difference and market that.

Spending To Much Money Trying To Get New Customers???

FromMyWhiteBoard.com

You know there are strategies you can use to lower your customer getting methods by 50% or more...

To get more customers cheaper you need to do a 3 simple things...

1. Position Yourself To Be So Different That No-One Can Compete With You...

2. Become The Obvious Choice For Your Customer

3. Make Your Marketing & Advertising Irresistible To Your Ideal Customer

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