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Are You Devaluing Your Product or Service?

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Hey there, Neil Winteregg here from Matterhorn Business Development. In a recent encounter with a potential customer, a scenario unfolded that highlighted a typical mistake in the world of business – the devaluation of your product or service in the pursuit of a sale. Let me share this experience with you and discuss why it’s crucial to stand firm on your pricing strategy.

The Tale of a Tempting Offer: A Lesson in Pricing Integrity

In my line of work, selling home service supplies, I often find myself competing with businesses offering a wide range of prices. Some are outrageously expensive, while others seem suspiciously cheap. Recently, a potential customer approached me after receiving a quote of $4,200 from a competitor. Honesty is key in business, so I told them my price would be around $5,500, explaining the quality difference in our products.

A couple of weeks later, the same customer informed me that the initial $4,200 offer had dropped to $2,900. Now, here’s the kicker – when a company drastically slashes their price, it raises questions about their integrity. It’s like saying, “Sorry, we might have been trying to rip you off earlier, but now we’ll cut you a deal.” This isn’t a sustainable or ethical business practice. While the customer chose the cheaper option, I stuck to my pricing, confident in the value of my products.

The Danger of Discounting: Devaluing Your Business for a Quick Sale

Discounting can be a powerful tool when used strategically. However, offering significant discounts without a clear reason can harm your business in the long run. When a company drops its price from $4,200 to $2,900, it sends a message – either they were overcharging initially, or their product quality is questionable. This destroys trust and devalues your brand in the eyes of customers.

In my experience, establishing a fair and consistent price for your product or service is vital. Sure, promotions and discounts can be part of your strategy, but they should align with your business goals and maintain the perceived value of what you offer. Otherwise, you risk creating a narrative that your product is only worth buying at a heavily discounted rate.

The Price is Right: Setting and Sticking to Your Value Proposition

The key to a successful business lies in setting a price that reflects the true value of your product or service. Don’t let the fear of losing a sale push you into a cycle of discounting that undermines your worth. In my business, I never waver from my price because I know the quality of my products justifies it. This unwavering approach has proven successful, and I haven’t compromised on the value I bring to my customers.

When you stick to your pricing, it communicates confidence and integrity to your customers. People appreciate transparency, and they are willing to pay a fair price for a product or service they trust. By avoiding the discounting trap, you position yourself as a business that values its offerings, ultimately attracting customers who prioritize quality over a bargain.

Lessons Learned: Integrity Over Immediate Sales

In the end, the customer in my story chose the lower-priced option, and I respected their decision. However, the experience reinforced the importance of maintaining pricing integrity. While it may seem tempting to match or beat a competitor’s offer, it’s crucial to consider the long-term consequences. Discounting excessively can create a perception that your business either overcharges initially or lacks confidence in its product.

Remember, it’s not just about making a sale; it’s about building a sustainable and reputable business. Be transparent about your pricing, offer value, and let the quality of your product or service speak for itself. In doing so, you’ll attract customers who appreciate the genuine worth of what you provide.

Conclusion

In the dynamic world of business, it’s easy to feel the pressure to lower prices to secure a sale. However, as I’ve learned through my experiences, sticking to your pricing strategy is crucial for building a sustainable and respected brand. Don’t succumb to the temptation of devaluing your products or services for a quick sale; instead, focus on communicating the true value you offer.

So, fellow business enthusiasts, set your prices thoughtfully, stay true to your value proposition, and let your integrity shine through. In the long run, customers will recognize and appreciate your authenticity, helping you build a thriving and trustworthy business.

How We Can Help

Visit now to access personal mentoring from our expert Matterhorn team. Complete a quick application on the site to get started on your journey towards success. See you there!

About Neil Winteregg

Neil started shadowing Greg during sales meetings when he was 16 years old. With braces and a face full of pimples, he started selling management training to dentists. He found a love, and skill, in sales and hasn’t looked back since. After a few years he also became a public speaker and you can often find him on the road speaking across the country. He’s our networking and sales monster, helping our clients increase their close rate like never before.

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