We always have a full-on debate at the Let's Talk events about the pros and cons of putting up (or putting down) prices. The discussion rolls over into all my work at the moment.
My view: if you can... put prices up, lose the pondlife and work less.
Michael Porter (not my favourite academic) as I have quoted before, on the subject:
“Cutting prices is usually insanity if the competition can go as low as you can”
And here's some numbers to back up my case...
- I have polled 2,000 businesses over the last six months and roughly 10% have put their prices up in the last three months.
- Not one has reported a loss in profits… the customers they lost were the pondlife, the problem clients they didn’t want in any case. They never lost their best!
Hmm… food for thought. It takes bottle to put your prices up, especially now. And what would happen if you put your prices down? As they say in the States, "Do the math!"
RELEVANT LINKS
Beating the Credit Crunch book
New Barclays Let's Talk... events: More Profit and Bright Marketing workshops
3 comments:
Hmmm, Gooey drool Mr. C! Keep it up, (no pun intended). Must be the moustache or the biceps, or both...
I agree Robert is def HARD work -pun intended - he writes classics too. He is a bit peter sutcliffe when hes tired at the events but on the 'hole' quite the queen.
Ooh - Suits You Sir!
It IS the tash AND the biceps gladrags.
But giving away your products? That's what I call truly insane. http://www.inc.com/magazine/20101101/go-ahead-raise-your-businesss-prices.html
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