In turbulent times when competitive threats are stronger, customers have reduced budgets, and you have unused capacity the easy move is to lower your price. Your rationale: “We have extra capacity, available salespeople, excess inventory and so on.”
What are the long-term impacts? When business bounces back (it will eventually) try going back to your customers and raising your prices. You can call your customers and announce your “post-recession price increase celebration.” Perhaps you could include your competition’s website and toll free number in your email announcement too.
Sometimes we need to lower prices but it should be your last resort. If you are the low-cost leader in your industry and price is your only competitive advantage you should stop reading immediately.
Before we move into ways to increase your sales without lowering prices it should be stated that the customer needs to be well-qualified. If the customer does not need your services and you have not qualified them many times you will get into a bidding war with your competition. However, if you have a well-qualified customer that needs your services and you have competitive advantage there are additional ways to win the business WITHOUT lower your price.
Ways To Increase Sales Without Lowering Prices:
1) Provide value added services
2) Extend payment terms
3) Offer a longer contract with a “no price increase guarantee”
4) Create promotional offers with related products
5) Incorporate a sweepstakes
6) Make product improvements with no price increase
If you would like to brainstorm other ideas feel free to call and discuss at 800.287.7198.