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Jack is operating a small business. He is selling barbequed meats in a town that is a 2-hour drive away from the nearest city. The price of his product is higher than his competitors in the city and those in his town.
While his customers come from the middle and upper classes, he is thinking of lowering his price to cater to “low-budget” customers and to increase his sales.
“Why do your customers buy from you?” I asked him.
Among other things, he said that he has several years of experience in the business.
“I don’t see how your customers will benefit from your years of experience,” I said.
“Find out from your customers why they are willing to pay a higher price for your product,” I further suggested.
As a business owner, do you find yourself in a similar situation? Do you think that reducing your price will attract more customers and increase your sales?
NOT necessarily.
You see, lowering your price will NOT automatically translate to higher sales. In fact, it may have the opposite effect.
Value For Money
Because it is not always about “mura.” It is really about “sulit.” It is about value for money. And it is about delivering value to your customers BETTER than your competitors can.
Customers are WILLING to pay more if they find value in your product. And they will continue to buy for as long as you consistently deliver value.
Again, these things should be clear to you as a business owner:
Feel free to share your experience, thoughts, and ideas by emailing me! I am a retiree and I have time to read and respond to all your emails. Being able to serve you is my oxygen. 🙂
P.S. If you want to understand more about your business growth stages and still do not have the Grow Your Business, Pinoy! book yet, get your copy here. If you or any of your friends would want to know what stage your businesses are in, feel free to take the assessment here.
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