Should you Put your Prices up or Lower them in Recession – Take our poll
The market environment is tough and customers increasingly want more for less and they want it quicker. In this climate, a lot of companies have to do more with lower resources due to the demands that their clients put upon them and the impact of price pressure on Cashflow. So what should they do about pricing?
Take our poll
and see what others are doing
Economics may suggest that we should put prices up when there is less business especially if input costs are higher e.g. the cost to hire and retain talented people as a differentiator. I know that leads to inflation and that’s a bad thing. It’s also a far too simplistic straight line theory. And what happens when there is no scarcity of supply to validate such a strategy? At that point, it becomes a case of perceived value and ROI especially compared to other providers of the same service.
I was always taught that you price to what the market will bear. But is that still true today? Isn’t it more about an acceptable price for an acceptable service? Win-win?
If you deliver results and the ROI is good, then price perhaps becomes less of an issue. But how do you prove that? And what constitutes acceptable results and Value for Money? Clearly, beauty is in the eye of the beholder and ultimately a client will decide from a beauty parade of potential suppliers. Testimonials
and case studies go some way towards validation to support their decisions.
So, what’s the secret and how do you ultimately validate your price and win more business
? Perhaps there isn’t a simple answer. One thing is still true however. Thankfully, people still buy people and you’re only as good as the people that represent your business. All things being equal, it’s likely that a client may go to a number of possible suppliers to evaluate credibility and to compare. Of those, it’s possible that credentials may come out pretty even and likewise testimonials. So, what’s the differentiator for higher price? I still believe that the calibre of people plays a huge role in price. If the prospect genuinely believes that you will deliver great results, great ROI and excellent service, they may well be more likely to pay for it if they trust and like the people offering that service. After all, lots of surveys show that price is not generally the primary factor in most purchase decisions.
Please take our poll
and let’s see what the consensus is.