We have a big problem and it needs fixing ASAP. “Cutting Prices” which just means “Killing Profits.”
This is the biggest mistake business owners are making these days without realizing it. There are a ton of issues with this but before that let’s get into how to raise prices and make more sales without all the annoying roadblocks you’ve definitely faced before.
So why not sell cheap?
In simple terms;
Bad Customers
Bad Reputation
Bad Quality
Let’s elaborate on that a bit…
Selling Cheap = Cheap Buyers
Your brand isn’t just about your product; it’s an image, a reputation. The moment you start selling cheap, you’re pulling in cheapskates.
What’s wrong with that? Well if you’ve been in business long enough you’ll tend to notice that the customers with the least money complain the most.
All that aside, when you start cutting prices you just entered a race to the bottom where you were already guaranteed to lose. There will always be a competitor selling cheaper.
But that’s not all. Let’s say you manage to sell cheap and stay afloat, you’re still destroying your reputation. That’s the only lifeline you have, and you just threw it away.
A bad reputation leads to bad buyers. Think about what kind of customers are at a dollar tree.
They’re the ones flooding your support team with endless complaints, requests for refunds, and general headaches. They’re also the least loyal—always ready to jump ship for the next “better deal.”
That “better deal” is always right around the corner. There is always some idiot willing to sell for 9$ when you sell for 10$ and there’s definitely another one who’s happy to sell for 8$.
Someone is always willing to make less profit than you, just to make a sale.
And by the end of it all, you end up with similar or more sales with less profit made.
Lose-Lose.
Bad Reputation Means Bad Profit
What comes to mind when you think of Best Buy or Dollar Tree?
Cheap Products, Low Quality, Broke people.
Those are a couple that come to mind for me, but even they have competitors. Every item you can find at their retail outlet is probably cheaper on Ali express.
This just goes to show, what you want is not to lower prices but to increase them.
Now what about when you think of brands like Gucci, Prada, and Louis Vuitton?
There’s an image that comes to mind, maybe wealth, status, or fame.
But it’s that reputation and brand image that gets people to buy their products at a high price.
We all know they aren’t low on customers by any means. So make sure you focus on building your reputation and growing a quality customer base that sticks around for the quality you provide and the level of care you display.
What we want in business is always a:
Win-Win.
You provide a high-quality product/service and the customer buys it at a price that they are comfortable with and you make a certain % of profit. What we DO NOT want to do is cut our profit, because if you’re ready to cut your prices, you’ve got customers that are ready to swap suppliers.
When the customer is happy and we’re happy. That’s when we both win, that’s the goal of business.
The #1 Goal of Business: Profit
You’re doing your customers a service by doing what you do. Remember that your goal is to build your business. Yes we help our customers and make a fair deal but at the end of the day both of us have to put food on the table.
Friendly reminder; the best way to make more money? Increase prices.
This doesn’t mean you’re scamming people, you will provide more value. Upgrade your product or service. Find a way to sell for more, whether it’s the same product or a better one, but don’t downgrade.
Always make sure you’re always looking at how to raise prices, improve your quality, and attract more customers.
And how do you achieve that? By building a reputation that customers trust and are willing to invest in. A strong reputation gives you the leverage to raise prices, increase profits, and reinvest in even better customer experiences.
So, always make sure you keep your goals in mind because your customers will do the same. If they won’t hesitate to pick the cheaper option, you shouldn’t hesitate to become the better option instead.
Become Better, More Expensive, More Reputable.
Talk Soon,
Akbar
P.S. Want to know how I’d demolish all your competition and make sure that all your customers simply can’t stop coming back to you?
Get in touch with my agency today. If we’re a good fit I will personally take a look at your company and your marketing, come up with a strategy of what I’d do differently, and discuss it with you in depth on a call.
No cost, no obligation.
If you want to work together I’ll tell you exactly how that works, if you don’t want to work together that’s fine too. No hard-selling, no pressure, no annoying sales tactics.
Sounds good? Then fill out this form: https://arstrategists.com/contact-us-now/
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