📍Sales are low for most businesses, no doubt. Is it wise for businesses to discount their products at these uncertain times to win consumers?
These are the crucial questions that will inform your decision:
1) What is the Social Economic Class(SEC) of the Target Market(TA)?
2) What percentage of the TA is having troubles paying the current price for the product?
Information 1 is crucial in determining if tampering with the price point is worth it, if the SEC of your TA is mostly upper, making changes to the price point sends an indirect message that you now no longer sell to just upper class, and as much as you might think you are helping them make the purchase easier by reducing the price, it also means you’re opening your product to people in the middle class or even lower class. This changes everything for your brand, the perception, the positioning etc
Info 2 is crucial because it tells if you really need to make any changes to what you currently have. If 60%-70% of your TA still make purchases of your product amidst this pandemic, tampering with the price point could send an unintended message to people currently buying at the given price point. It just means you’re ready to sacrifice quality for quantity. Reducing price sometimes send a wrong signal to your loyal consumers.
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