Do you think that you charge too much for some of your products and services? We are in a tough economy and so maybe now is the time to cut your prices so that business will increase for you. If you think 2010 was hard the forecasts don't look much better for 2011. So maybe now is the time to consider a price reduction in all the things you offer.
Maybe that will stimulate growth in your business and cause things to pick up for you in the next year that we have upon us. Or maybe that is totally the wrong way to look at things. Maybe instead of a price reduction you should focus on more and more quality for your products and services and at the end of the day wh at you should really be thinking about is a price hike.
Now you may think that I have lost my marbles but have you ever heard of the vodka company called "Grey Goose" of course you have they are the most popular vodka in the world right now. But they weren't always in such a great position. So what did they do? The brand managers realized that most of their consumers couldn't distinguish between good and bad vodka and rather just us price. Their guide. The higher the price the better it must be! So what did they do? They jacked up their price to $30 a bottle.
That was double their closest competitor Absolut which was at $15. What happened? Well the consumers thought because of the high price that it must be the best so they bought it. In fact now they sell more vodka than any other company. They are outselling everyone not because they are the cheapest, but because they are the most expensive brand out there and therefor they must be the very best.
This concept worked so well that Bacardi just bought the brand for $2 billion. That is 20 times the pre tax cash flow. So I guess it worked well. So maybe you should consider a price increase so that your customers will see you as the best. It won't work for all businesses but it may work for certain products and services very well. Give it some thought and see what you can come up with.
You might find that this is just what you need to stimulate growth in your market sector.
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