Tuesday, October 20, 2009

Resist the Urge to Under-price your Products

Source: eGrabber Newsletters

The urge to under-price your products or services will be especially high when the economy is down. Low sales usually has the strength to convince even strong sales people to think that their pricing is high for the market. But, under-pricing is no the solution; it hurts your business in other, more important, ways:

- Your product is perceived to be of lower quality
- Potential buyers see it as having lower credibility
- Your product does not realize its appropriate and relevant price in the market

So, it is always important to keep in mind the perceived value your product offers in addressing your customer’s problem and price it in relation to that. Remember, the economy has already started moving up and under-pricing now will have huge negative effects on your business both in the short term and long term.

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