You can’t cut your price and expect to achieve prosperity.
I still can’t believe the number of salespeople I encounter who believe if they only cut their price, then somehow they will achieve prosperity. The only thing they’ll achieve is the ability to attract customers who are only attracted to them because of a discounted price and have zero potential to be customers at full-price.
In my early days of selling, I worked for several global food corporations. Many times, retailers would tell me that if we would introduce the next new item at a really “fire-sale” price, then we would attract a ton of new users who would fall in love with our product and want to buy it again. The problem with that argument is their idea of a “fire-sale” price would be something less than half of what the normal price would be. If we followed that philosophy, we would indeed wind up selling a lot of merchandise. But the customer would come to believe the price/value relationship was far less than what our business plan required.
The fallacy of discounted pricing is well known. Simply look at the airline industry to see it at its best. Discounted pricing is not a business model that works. The money you give away discounting the price would be much better spent promoting the price/value relationship you want to establish. Customers will pay full price, if they understand and appreciate the benefits and value of the proposition.
