Do it right: Pricing in a downturn

Don't be slash-happy. Price is supposed to reflect the value of what you're offering, so indiscriminate discounts can make it seem like a cheap commodity. And you don't want punters getting a taste for those low prices.

by
Last Updated: 31 Aug 2010

Find another way. Lure people with such incentives as free delivery, extended warranties and monthly instalment offers. Your pocket may take a hit, but the integrity of your prices won't be affected.

Be the best. Even if your price could be lower, ensure clients don't feel ripped off: make your service the most personal, deliveries the most prompt, and products the most reliable to add real value. Earn people's trust.

Avoid a war. It may make your head swim seeing major players such as Currys peddling half-price kettles, but we can't all afford to play that game.

Know your customers. Investigate who's spending what, and how quickly they pay. Save your deals for punters who keep coming back, those who buy big, and those who cough up early.

Shout about it. Offers such as 'buy one, get one free' go down well at times when pockets are stretched. Lend your offers the right marketing muscle, and people will stick with you.

Innovate. Rolls-Royce doesn't just sell its jet engines - it packages them with a maintenance offer that's more economical for customers in the long run. Think what the customer is buying, not what you're selling.

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