Why Are You Reducing Your Prices?

You’ve seen it many times. A business owner sees a competitor lower their price on a product or service and they then decide to lower theirs to the same or slightly lower price. Little thought is given to what exactly has occurred beyond, “I have to meet or better the prices my competitors charge. In simple words, this is usually the wrong approach.

Price always equals value. Further, when pricing a product or service your goal is to not only make a profit but even before that profit, it is to communicate what you offer to the marketplace while also identifying your business’s brand. Lowering your price sends a message many do not consider, “if you can sell it for that lower price, why have you been selling it at the higher price?”

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Don Herrmann is President and Founder of Herrmann Advantage Consulting, LLC, a consulting firm dedicated to the development of long-term sustainable growth for small businesses. Don provides education, tools, training, coaching and more important results to small business owners. Using Organix Business Solutions tools, he has successfully grown many small businesses while providing sustainability, business safety and both value and profit growth to their owners. A speaker, facilitator and business thought leader, he can be reached by email at [email protected].