Please don't be fooled into thinking that you can abandon the marketing strategies that have made you successful when the economy was booming and you built a loyal customer base.
Unless you really don't have a loyal customer base.
Here's the choice you need to make:
1) Do I start discounting and cutting my profits to try and win customers and clients by offering the lowest prices?
Or:
2) Do I make sure that the customer experience is the best it can be, and improve that service, and build more profit into my sales model?
If you chose option 1, you will lose. There is always someone that can undercut your prices. (Think Walmart).
If you chose option 2, then start looking for ways to improve what you have to offer. You may even be able to charge a premium for it. How would you like to add a service that costs you $10 but you can charge $15 or $20?
I see that smile on your face.
But here's the tricky part.
You don't get to decide which extras to add. That's backwards. Instead, find out what your clients and customers would find valuable, and then find a way to do what they want, not what you want.
See it's not that tricky after all.
The choice is now yours.
Wednesday, October 22, 2008
The Choice is Yours
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Hello :)
ReplyDeleteVery informative post and sound advice in these difficult times.
Many thanks for sharing.
I have one doubt. Don't you think it would be a good idea to improve the sevices and hold on to the price for some more time till the customers come out of the strain on their profits?
Have a good day :)
Yes, I agree that in some circumstances you need to improve services just to hang on to customers. But then it will be more difficult to start charging them for something you gave them at no charge.
ReplyDeleteA good rule of thumb that I use is if the extra service costs money, then we should at least cover the cost. If it is simply a better service that does not cut into your profits, then you can use it as a reward to your current clients.
I offer my clients longer contract options now to help them lock in their rates for up to three years instead of just one year, thus protecting them from "price increases". Then we look for ways we can grow buy adding new clients at higher rates, or adding new services that our clients want and see value in and charging them a little extra for the extra service.
Hello :)
ReplyDeleteMany thanks for the valuable advice.
Best wishes :)