Dear Aunty B,
My problem is this. My competitors are aggressively discounting to boost their revenue from increasingly “discerning” consumers.
If I don’t, I am worried about being priced out of the market. If I do, it will destroy my brand, which has been seen in the marketplace as quality. What do I do?
I understand why you are asking. But think of who you are and how long it took to get there. You built your brand proposition and trained your staff to build and deliver on that proposition.
You can destroy your brand very quickly by heavy discounting and you may never again be able to rebuild back to a confident position. Don’t forget, the economy will recover and how will your brand be perceived then?
Of course you have to adapt to a changing market place. But there are lots of things you can do to make your offer appeal to cash strapped consumers. Provide alternative payment options. Bundle different elements of your package together in different ways. Come up with an exciting new product and bundle that in with existing ones.
Provide a cheaper entry level product or something for free and then upsell. Be creative and confident and don’t panic. Things will pick up soon and you will be far better placed than competitors.
Stay smart and good luck,
Your Aunty B.
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