Rationale for Entry-Level Offerings

A peasant may not remain one. Offering a range of models at different price levels lets consumers develop brand loyalty — before they can afford your best. Example: By ignoring the low ends of their markets, GM and Ford allowed Toyota & Honda to grow strong enough to then challenge them with high-end cars. Source:Continue reading “Rationale for Entry-Level Offerings”

Price Cuts That Don’t Increase Sales

Are you increasing sales with your price cut? Or… Just increasing your customers’ inventory? Advancing their expensive purchases by a month or two? Price cuts that don’t increase total sales can be as worthless as the promises of a known liar. Source: The Tao of Pricing.

Competing With Low Prices

It takes a rich company (or a one-man service provider) to compete through lower prices. And there’s the danger of another company matching your price. A wise owner seeks a low-cost, efficient operation, but… most products and services will do better if price is not their only advantage. Source: The Tao of Pricing.