If Price is what gets them, that’s what will take them from you!
Discounting, a vile word. A word that my sales teams know I hate and will challenge them on if they even think about giving something away cheaper than what it is worth. Sure in a lot of businesses such as retail it can work as a short term solution to drive sales, but ultimately in the end discounting and undercutting sends many businesses down the gurgler each year.
If a customer comes to you because you are cheaper than everyone else, that is great to begin with. Hell you may even be the cheapest on the market for a number of years and experience high growth and the start of your own empire within your industry. But what you need to be thinking about is that, whilst you are going through that process, someone out there is planning a way to do what you are doing much cheaper and when they launch, those who came to you based on price, will probably leave based on the same reason.
Some people say that customer loyalty is dead, I am not that cynical. When it comes to keeping customers, you need to make sure that you are building value around what it is you do for them. Yes you should be competitive on price, but value for money, is a much more powerful sell – and when you are starting up, you need be thinking along these lines as opposed to how cheap you are.
Create a brand. Put a Value on that brand. Don’t Discount.
It works for Apple – right?