Sunday, March 24, 2013

How To Avoid The Price Cutting Trap

My my as God is my witness I swear that is the #1 problem I hear! The problem of so many distributors, that they are up  against competitors who are all too willing to cut prices.

Thank goodness for an article by Andy Cohen, who put the price war in perspective, by looking at Harley Davidson. How does H-D charge such high prices for their motorcycles and their apparel? That company has really connected with its customers! The customers are truly in love with the brand! Not just H-D, but think of the other companies who charge a fortune because their logo is on the item somewhere. Remember all the people who will buy something branded, and pay a lot more, because of it.

The only way to get consumers to pay more is to foster a close personal relationship. The purchaser of your item has to feel that the connection is more than just a buyer - vendor, that there really is something in it for them. Otherwise they will just fall back on who has the lowest price. You need a message that makes consumers forget about price, and focus on the service and the relationship that they have with you.

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