Many organizations fall victim to lowering their prices in order to close a sale. What they may not realize, is that doing this can put pressure on other aspects of their business.
The Dangers of Lowering Your Price
When you compete on price, it can make it harder to deliver an exceptional service experience to the customer. This can result in damage to your reputation, products and services.
Ways to Stay Competitive
In my opinion, for service organizations there are three basic elements that can be adjusted to meet the customers’ needs:
Most organizations aren’t able to offer the best of all of these elements. Instead, they must find a way to balance all three. Competing on price tends to be a short-term fix. Before lowering your price, consider how you can provide more long-term value to customers.
Work smarter by finding a value-driven price that balances with the quality of services you provide to customers. Instead of competing on price, compete on the value you provide to the customer. Help your customers understand how the value you bring, outweighs the price of your offering.
Corey Kerns, Senior Finance and Operations Analyst, is responsible for developing and monitoring key performance indicators, as well as assisting in the evaluation of profitability, efficiency and automation strategies. Prior to joining Collabrance in 2015, Corey started at GreatAmerica in January 2011 and served as the Senior Business Unit Analyst for the Communication & Data Group. As the Business Unit Analyst, Corey led all activities with respect to financial controls and evaluating the financial implications of the business unit’s operating strategy. Corey received his B.A. in Business Administration from Wartburg College and an M.B.A. from the University of Iowa.