Every single business has been affected by Covid-19, either directly or indirectly although the extent of challenges can vary. Every individual has been similarly impacted by the sudden onset of the pandemic. While many businesses are opting for competitive pricing, others are not too sure about the best course of action as they weigh their options. This confusion stems from the uncertainty that still looms large for many businesses. To help your business grow and recover from Covid-19 challenges, here are some expert tips to consider when pricing and discounting your products.
Motivate Sales Team
This might seem out of place but it is not. What many businesses fail to realize is the importance of the sales team when things are not going great. You want to focus on sales capabilities and invest in improving them because this can lead to better profitability in the short and long-term. When you have better sales capabilities, your business can do well even without providing steep discounts. Similarly, you should motivate your sales team through incentives to ensure they are able to keep your business afloat so it can survive more challenges that can come with the ongoing pandemic.
You must maintain price and discount discipline. It is easy to fall in the trap of wanting to drastically slash your prices because your competitors did so and are now making quick sales. This type of competitive pricing is not going to work in the long-term because of many reasons. Even if you decide to be the first one to decrease your prices, your competitors can get in the same boat and it will be a lose-lose situation because all of you will be losing your brand reputation. If you lower prices now, customers will expect you to keep the prices low even after the Covid-19 is over. A slash in prices can lower the quality perception which can hurt your brand. So don’t do it.
Focus On Value
Offering value at this moment is of utmost importance for every business because your customers need it. You might be tempted to look for pricing strategies for boosting your sales but now is the time to focus on value. The value proposition is the need of the hour because it will ensure you win both ways. Instead of desperately seeking to decrease your product prices, you should focus on building value so your customers stay loyal. For instance, you can offer increased warranties and more support than before. Openly communicating with your customers can help improve your brand image and can help you acquire new customers.
While competitive pricing is not recommended for everyone, it is vital to take a flexible approach. This means you must provide customers the value they seek while ensuring your business is safe from short-term measures that can sabotage the brand. For example, your business should focus on providing relief to customers while ensuring your business is safe. This can include flexible payment options which can help you maintain your profit margins while your customer can feel at ease by paying a small amount per month. This can greatly help your business survive while showing your customers you care about them too.
Evolution Is Inevitable
Pricing isn’t the only aspect you should be worried about because pricing is only a part of the entire picture. Although things are slowly coming back to normal according to CNN, the U.S. still has a long way to go. The pricing strategies you set right now might not be appropriate in the next month which is why it is important you understand that the situation can change and evolve slowly or rapidly. This means you should be prepared for constant changes. However, it is still best to think about how your pricing decisions will affect your business, your brand image, your employees, and your customers in the long-term.
Pricing is difficult and full of risks but that doesn’t mean businesses should sacrifice their pricing discipline to achieve short-term success. During Covid-19, you should focus on providing value rather than fueling your sales which is why pricing is more important than ever. Your customers will remember you for it. It is time to re-evaluate your pricing strategies and price intelligence tools can help you pick the right strategy that works like a charm for your business. Intelligence Node solutions such as assortment planning, competitive benchmarking, and pricing optimization can help you make smart decisions in a snap.