When you get into entrepreneurship, you likely tend to put up with any job proposals more easily, even if they aren’t useful to you. Should you accept all offers even though they are not in your favour? What are the consequences? And what do you do in this case?
Surrendered to facilitation…or not?
I had this situation regularly (even a lot!). While our work isn’t necessarily good, most of us are quick to accept trade concessions in order to continue to “survive”. I realized that in most cases, the process turned out to be somewhat beneficial to the company at the time, but in the long run, it rather hurt me. We often don’t realize the impact this attitude of accepting everything at work can have. It seems trivial to us, but giving in to the easy way can have serious business consequences!
Don’t underestimate what you do
By wanting to reduce the value of your product or service, you are reducing its value. Have you ever seen Apple offer promotions on these phones? Of course not… Reducing its price means reducing its profitability, or even not being profitable… Period! Supermarkets apply this technique by trying to promote a product, without any aim of profitability from that sale, but with the aim of selling other products of higher value, to get more profit.
Negative consequences for business
The consequences of such an approach can be manifold. The customer may see it as a habit and it will be difficult for you to get back to the price that is normally charged, unless you do it in very specific periods such as sales. But in this specific case, the goal is to create an expectation at a specific time. The main consequence of lowering the price when it is not justified is that you put yourself in a position of weakness, this means that by doing this you are highlighting the fact that you need the customer to live for a while, and don’t forget who needs you! It is necessary to reverse this curve of thinking. Finally, the last important result: the image of what you sell will also be affected and you will lose credibility, unless you do your “low-cost” strategy, as for example in Hema stores. Or Primark which offers very attractive prices.
They made up for the mistake made tactfully
Undoing a rollback without harming the client’s sensitivity is often very complicated. In fact, the latter will have the impression that he has done you a favor, while you do him many, or even more! If you reach this point of no return, it seems difficult to be able to get out of it without causing collateral damage. We must never forget that behind any business there are men and women, which stimulate an important part of the human being and the ego. Psychological preparation is necessary so that the client has enough time to assimilate and digest the information. If you have the opportunity to phone him and meet him, do so. Avoid undoing the email, as it conveys little emotion and can have a detrimental effect on your relationship.
what should be done
1- Never underestimate the value of your product or service Even if you are in a difficult financial situation.
2- You must Always highlight what you can offer your customer And not what they can bring you.
3- Take the time To analyze what you are willing to give up. What are the limits that should not be crossed? Do you have the possibility to return? So what point?
4- Partnership builds over time. So you have to imagine what will happen in a year or two if you decide to change your rates. Is it a “one shot” process or someone can come back to buy your product/service?
5- Remember one thing: Lowering the price means lowering the value of the product. What do you think of companies that offer promotions or discounts regularly? When you sell a good product or service, there is no need to lower the price.