Avoid using low prices as a lure to gain customers. Promoting low prices typically attracts bargain hunters rather than loyal buyers. When customers share what truly satisfies them, they often emphasize the importance of the relationship and regular contact with the seller, rather than just the lowest price.

Keep in mind that your approach should be customer-focused. Highlight the benefits of your products and emphasize the value-added features you can offer. This strategy fosters stronger connections and encourages repeat business.

Pros and Cons

Pros will include:

• Get new business
• Stay competitive
• Appeal to the price-sensitive market

Cons will include:

• Existing customers may feel prices were too high all along; they’ll wait and see if prices go even lower.
• Setting a dangerous precedent, telling buyer that lower prices are possible.
• Profit margins erode.
• Gives the impression your company isn’t as good as your competitors.
• Positioning yourself as #2, #3, or #4.
• Gives the impression that you aren’t as creative and your only defense is a better price.
• Employees will begin to believe you are lower quality than the competition. You too can begin to believe that you aren’t top quality.