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Avoid the price wars | NationNews Barbados

“Don’t discount your product or service for the sake of competing. Getting into a price war with your competitors – without adjusting the value of the product or service – will just send you and your competition swirling into a downward pricing death spiral where no one wins,” he warned.

Some alternatives he gave included maintaining prices while adding value, increasing prices and quality, and launching “a low price fighter line”.

Carrington also advised companies not to “reduce prices on your high value products and services”, control company costs and reduce inefficiencies, “define the value you offer to your customers”, “use excess capacity wisely”, “know when to say no” to customers, and to be “opportunistic”.

“During a recession keep high-value products priced appropriately, but focus on selling more low-value products and services.

Focus on volume with the low value products, and apply an appropriate mark up using a discount grid.

“Streamlining your company’s processes and expenses is good for business in any economy. Reducing prices to generate more sales will not improve your business in the long term,” he said.

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Avoid the price wars.

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