April 22, 2008

Lower Prices translate to Lower Sales!

Don't even consider lowering your prices to increase sales. If you are asked by your buyers, presented with some unbelievable opportunity, or just searching for new markets - lower prices will not get you there. I am reminded of all the problems associated with pricing when an importer shared a major failure and learning experience today. He was asked to drop his price considerably by a local distributor and they would participate in lowering their margin for a hot special pricing that would challenge the big top selling brand. The lack of any market focus beyond pricing resulted not in better sales but a failed brand. The product movement suffered terribly and the efforts to grow the brand died along with the product which was removed from the US Market shortly after the hot special hit the market.
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