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Thoughtful Thursdays – The penalty for dropping price

There are instances when dropping price is part of a plan for a product or service. You see this a lot in consumer electronics as a product matures and reaches the end of its life cycle. It is an acceptable way to extend the brand as competition ramps up and the product becomes more of a commodity.

Today’s sales thought is about the penalty for dropping price when it is not part of a product strategy.

One of the easiest ways to make a sale is to drop price. It is also one of the quickest ways to subject to your business to a price drop penalty.

Here are a few ways that dropping price at one customer can penalize your business:

Before dropping price, think of the long term consequences versus the short term gain of an order.

Good selling,
Richard

Have a question about sales? Contact Sakanashi and Associates Inc. and I will respond.

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