Are you considering discounting?
Short-term discounts can help preserve cash flow in an emergency, or be used as a strategy to increase market share. But the impact of discounting on your brand, margins and future pricing must be included in your decision! Commodities are assumed to be equivalent and are sold on price only.
Most companies are able to add value and differentiate themselves from their competitors. If price is your only advantage – don’t let your competition know. If they have deeper pockets, they will undercut you – and outlive you. Brands like Maybach, Bentley and Mont Blanc do not discount. (Do they?). They know their value and educate their clients about their value.
Identify, analyse and focus on the value that you (can) deliver and how your products or service add value to your clients. And if, for example, you are a Top 4 Accountancy Company pitching audit services to a UK based company – do not rabbit on about your global reach!!!! Fool’s Gold!! Relevant added value, promoted to the right customer, in the right way and with the right customer service will always trump price! If you do not add and sell value, price will always be your determining factor.