SCORE Small Business Blog

Grow: Will Lower Prices Increase Sales?
3 Comments

How Do You Boost Profits in a Recession?

In this recession we are all thinking that if we lower prices we will get more business…but guess what?  Price is a losing battle because when you discount your products or services you are driving your revenues down and your profit margins. Always remember, we are in business to make a profit.

Price cutting is NOT the answer:

Leverage the benefits of your products and services.

  • Give guarantees
  • Build sales with value
  • Gauge sales by phone calls, are customers calling you?
  • Gauge sales by clicks, is your website getting visitors?
  • Consider cause marketing; can a percentage of all sales be donated to your favorite charity or your customer’s favorite charity?
  • Be a better corporate citizen: publicize how you are going green by saving resources and preserving the environment.
  • Become more relevant to your customers educate them and help them this builds trust, credibility and loyalty.
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Create value for customers and value is not just price.  Drive sales with the benefits you can offer.  Listen to your customers and stimulate sales through loyalty.  These are a few ideas that I learned when I attended Advertising Week in NYC.  Are there other ideas that you can share on how to keep your customers coming back.

Julie BranderBusiness Mentor, SCORE New Haven
Julie has been a SCORE volunteer since 1997. She has 20 years of experience in business, starting a manufacturing, wholesale and retail jewelry company. After selling her business, she dedicated herself to helping other entrepreneurs start and expand their business.
www.scorenewhaven.com | @juliebrander | More from Julie

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Discussion (3) Comment


  1. LorraineVisitor

    Reward systems always seem to work for me… If I am rewarded for my loyalty, I stay loyal and I tend to buy more when I know something “free” is coming to me for my efforts.


  2. Noah MartinVisitor

    Our home business was really affected by the Economic recession, we have to cut jobs just to cover up our losses. fortunately, we have already recovered. ~


  3. Business helpVisitor

    I agree price cutting may not be the solution,but a good deal is always a way to spike sales in a slow economy.Plus you are setting the prices anyway so it is pretty much all profit on your end.

 

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