No one wants to turn down business. But sometimes, doing just that will help in the long run.
Working within someone’s budget is one thing, but busting your butt for an account that doesn’t warrant it is another. It is important that you can make the distinction.
Also, during these “turbulent” times, many businesses are waiving membership fees, or offering outrageous discounts, just so they can get people through the door. In many cases, that tactic is beneficial. When the business needs a more diverse customer base, offering discounts and specials are a great way to attract people that may not have otherwise stopped by.
It becomes an issue when those discounts and specials are expected by your normal base.
Protect the Brand
Each time the price of your good or service changes, you are also changing the value. How does that reflect your brand? Acknowledging the hardships of your customer base is commendable, but if good times are right around the corner, how will they react to a price hike? Does your brand flow with economic activity? If your brand is elastic, then discounts and specials to fight off competitors is worth it- as long as it is for a limited time. If the brand is inelastic, then changing the price and messing with the value is unnecessary.
Harder to Sell Value when Dropping Price
There may be times when people will walk away from your good or service. That’s okay. We had to learn that too. Some people will not perceive the value of what you’re offering, and others will. But stay strong to your loyal customers, because they can tell you why they think it is worth it, and you can capitalize.
If you chase those customers you lose because of price, you may start to alienate your current audience. If you are so willing to drop the price, or offer discounts, why did they agree to pay what they agreed on in the first place? No business owner wants to have that conversation. It is much harder then, to climb back up to where you were, and it is usually an even less fun of a trip.
If the Product/Service is Good, then the Customers Will Come
In summary, don’t jeopardize de-valuing or under-valuing your business by chasing bad customers. If what you are offering is good, then the business will come. Campaigns that include discounts and promotions are great to attract new business, but those campaigns should be used seldom and wisely.
Getting customers is always wanted, but you want good ones.
Hope this helps.