Friday, April 18, 2008
Raise your prices, Increase your sales!!!
OK, so the consumers out there may not want to read this, but I know all you retailers and especially internet sellers want to know about this.
It's always been my firm belief that all of us, you, me, retailers, manufacturers, EVERYONE, needs to sell on VALUE rather than PRICE. Price only reflects the cash part of the equation, not the total package of service, experience and security.
I just read an amazing article in Business Week by Steve McKee entitled "Low Prices Are Not Always Your Friend". In it, he makes an outstanding case for maintaining prices, even in a tough economy, because of the underlying value statement it makes to the customer.
Here are a couple of items from the article that stuck out for me:
"... thousands of previous purchase decisions have taught me price isn't merely a reflection of product quality, it's an indicator of it as well. If something is more expensive, it's usually for good reason. "
"Higher prices may lead to lower sales volume in the short term, but they also provide the margins companies need to invest in brand-building or to expand their distribution networks."
Basically, if we all continue to sell at ridiculously low prices with little margin, we won't be able to grow or promote our businesses and we'll be stuck in a cycle of constantly working with no profit.
I highly recommend this one for your weekend reading.
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