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How To Compete -- And Win -- When Rivals Cut Prices


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#61 FroggyFunCO

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Posted 30 July 2016 - 08:11 AM

 

I always hold my prices, I only discount on a large order. I try to set myself apart by diversifying my offer, this way they cant go elsewhere and get it all. Not very many people will take different party items from different party suppliers. In our area there is a lot of price cutting ( about 12 new companies in the last 2 years everybody seems to thinks it's an easy business to run out of your garage!) they have all lowered their prices....will see in 2 years who will still be around....

 

 

What other types of things do you offer?


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#62 BigBouncer

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Posted 21 February 2017 - 08:17 PM

Like any business, you need to know your numbers. I hold my prices on some items, and discount on others. Just make sure your not losing money from each transaction.

 

Coming from a marketing background, we look at each customer as potential returning customer and a marketing channel for referrals.

 

If you have referral systems in place and provide an over the top customer service experience, your customers will surely refer you and become regular customers.

 

You need to figure out the lifetime value of a average customer. Don't think "how much you can make from THIS Sale". Think "how much can I make from this customer over x years" and "how many new customers can I get from this customer"

 

If you know this number, you will be able to figure out, how much you can afford to pay to acquire a customer.

 

When presenting a discount, we clearly state this is a "one time discount". So if they were to book again, you can choose to give it to them again, or say it was only a once off.






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