Yes, I’m talking about upping your prices AGAIN. And another post in this series will be out tomorrow.
I’m currently reading Magnetic Marketing by Dan Kennedy and I’ve just come across this, which you need to read and understand.
“When you don’t have a real system in place to market your products or services, you tend to look at what your competitors are doing to build up their businesses and nine times out of ten it’s lower prices.
This occurs in every industry. A mad dash to the bottom in the hopes that lower prices will give you the edge you need.
The only problem with this is the simple fact that there can only be ONE lowest-priced offering.
Someone’s got to take the hit to be number one in that race.
But pole position is easy to come by, especially if you have deep pockets and you don’t care if you lose money over the short term. You can afford to drive the competitors out of business.
The congratulations, you’re King.
Until you’re not.
Bottom dwelling is NOT the path to long term success.”
So you can see, the panty selling industry is not alone in this warped understanding of what’s the best approach to make sales.
You don’t need lower prices, you need a system for marketing that does’t lead to this bottom dwelling situation where other sellers can’t compete (nor do the want to) with $5 and $10 panties.
You have a duty to stay in business and that means upping your prices not lowering them under some false notion that that’s the way to make sales and build your business using strategies that won’t cripple your bottom line and your profit margin.