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Pricing for tough times

clnshirtz — Thu, 05 Mar 2009 14:55:43 GMT

Wanted to check in and see how people either are or are not adjusting their pricing for tough times. I was at the local coffee shop early this morning and I was thinking about whether or not the shop owner should try to 'lock in' her revenues by offering her loyal cusotmers some new kind of monthly pricing ($20 per month and you can have a cup every morning).

I have also been wondering if I should adjust my pricing downward or doing something to lock in cusotmers that i fear I might lose. Or introduce a 'job searchers package' However, i also read an article recently that businesses rarely make up for the lost revenue that happens when they drop prices.

What are your philosophies on pricing in tough times?

Re: Pricing for tough times

Webnet — Fri, 13 Mar 2009 22:48:30 GMT

Clnshirtz,

My advice is to not reduce your pricing, but exceed expectations. Make sure you keep in touch with your customers and don't forget to offer additional services in which they may not be aware. Keep in mind, once you lower your pricing, you'll need time to recover when things rebound. If you feel you're in jeopardy of losing a customer, why would that be? If they're working with you now, does that mean they're going somewhere else for the same service? If so, you probably need to tweak your services to satisfy.

I've considered the pricing issue a few times as well, but find that my clients prefer to stay with what they know, rather that get what they don't even if it costs less.

Just keep wow-ing 'em.

Webnet