Are Your Prices Too High?

What is happening with your sales? Are you losing a lot of customers? If you think you are having issues with your sales due to pricing, it is time to reconsider how much you are charging. You need to assess what your companies needs are and to determine what your customers can afford. Simple slashing prices can be a bad thing as it shows the customers that you do not value the products and you were trying to get more from the customers than the product was actually worth. Pricing mistakes can cost you a lot of money and can really ruin your business if you are not careful.

Here is the deal, no matter what you think your price should be you will always have competitors out there and they can continue to drop their prices to undercut yours and to get your business. You need to figure out what your customers value and what they can afford. In a lot of cases it is due to the way that you advertising and not as much as the pricing that you are using.

You need to learn about the customers and to understand how they shop. Some people will shop based on price where others end up shopping for quality and durability of your products. The people that are motivated to buy due to price often don't care about quality and in some cases they buy from companies that are not even around in a year because they are just fishing for low pricing. It is hard to deal with the customers that are motivated by price so you have to really work on attracting the customers that want to buy for your quality and service instead.

When you slash prices, you usually end up slashing quality and your reputation. You won't get the type of customers you want as you attract people that don't care and they just want to get the best deal. This means they will be a temporary customer and will not be a lifelong customer that you can rely on to give you quality service all the time. The annoying thing about lower quality customers is the fact that they will take advantage of you as much as they can. Usually they want to see you give them an even bigger discount despite the fact that you have already cut your prices for them.

If your prices were sustaining the business in the past, they can still help to sustain your business now. The only difference now lies in how you attract customers. You need to market in a different way in order to get people to pay attention.Slashing prices only helps temporarily. It can give you some quick cash but it doesn't help to sustain your company for the long haul.

Use customer surveys to find out what motivates your customers to buy from your company. You might find that some buy based on the price but there are many more that will likely buy based on the quality of the product and on the quality of customer service that they are given. Your goal is to make your company into one that breeds quality and success. People will pay more for your product if they know it gives them a higher level of quality and will last longer. Start offering warranties on your products and make sure you are getting your products out to your customers quickly. You want people to get their products quickly as it helps to build your reputation and will get a higher quality customer base for you to work with.