« Know thy customer and care enough | Home | Three Tips for Generating Referrals »

Slash your price and lose loyalty

By Natasha | October 8, 2007

Warning: Be Careful with Discount Pricing

Companies use discount pricing for many reasons: To stimulate short-term sales; to match a competitor’s price reductions; to get high-traffic display space at a major retailer.

But before you slash your price, consider the impact this could have on customer loyalty.

Why? If a customer is more loyal to price than to your brand, your brand is vulnerable to pricing moves by your competition, and you may be forced to cut your price—and your margins—in order to maintain your market position. What are the alternatives?

 There are many ways to earn customer loyalty and increase sales. Discount pricing is but one, and it can backfire in the long term.

Source: Excerpt - MarketingProfs “Get to the Point”

Topics: General, Marketing |

Comments are closed.