Price Cutting – The Road To Ruin

You know a brand is in trouble when it cuts its price.

Anything is better than buying market share.

Here are three reasons why you should back-off discounting and improve marketing:

  1. Competitors with deeper pockets can price-match until they drive you out of business.
  2. They can increase their marketing spend to wipe out your price advantage.
  3. They can do nothing, watch your profits decline and then move in to pick your bones.

Dropping the price is the easiest way to sell more of a product – but it’s also the most expensive!