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:
- Competitors with deeper pockets can price-match until they drive you out of business.
- They can increase their marketing spend to wipe out your price advantage.
- 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!