Low Cost, Cheap, Inexpensive "MAY NOT BE THE SOLUTION!"

[Jonathan_Hue]

Hello

We often hear about companies going "Cheap Services", "Beyond Imagination Prices", "Rock Bottom Prices" and it goes on and on. What people really forget is that, if an there is an established business, providing expert solutions and has been there for quite a long time, then why would it go for sales pitches mentioning low price tags. If that company has established a TRUST, not only in the minds of the consumer but also the corporate corridors, then luring potential prospects that way would be a little de-motivating.

Usually if a firm wants to break into some niche, then it should opt to go for TEMPORARY PRICE REDUCTION or LIMITED TIME PERCENTAGE DISCOUNTS. These would be much more captivating than the low price tags offer.

And again, why would an established company sell its products which are presumably doing good in the market for LOW COST or CHEAP RATES.

What are your thoughts on this?

Thank you

[obenix]

Originally Posted by Jonathan_Hue

And again, why would an established company sell its products which are presumably doing good in the market for LOW COST or CHEAP RATES.

Maybe for market share...
Maybe to use the loss leader method...
There could be many more reasons..

[Jonathan_Hue]

Thank Obenix

I agree with you completely that there could be multitude of reasons (specific to that business only) which may prompt them to change the tactics. The only concern is that it may cause a negative image for that company as it may get lined up with hundreds of businesses with the same sales pitch or buzz words.

Spending some time and working on the creative aspect may make your business Stand Apart from the crowd.

I ask you, what is yr first impression if you look at an army of businesses with similar sales pitches?

Again i agree with your point of view that is Change Of Tactics


Thank you

[colorexpertsbd]

There is a term in Business called Product Life Cycle. The major reason that affects many businesses market share is the ever-changing mentality of human. From marriage to choosing products, they can't stay satisfied with single thing. But, good customer I think should be like a good spouse. But, good spouses are rare in this world.

[Jonathan_Hue]

From marriage to choosing products, they can't stay satisfied with single thing. But, good customer I think should be like a good spouse. But, good spouses are rare in this world

Agreed, but u can find customers who are willing to buy your product. My point was that, why go for a strategy which doesnt make you stand out of the crowd, infact in one sweeping scan you may become un-noticed, even if you provide what the customer wants or more than that.

Still i know the product development stages, which works and which doesnt is a tought question!

Thank you

[phacker]

Cheap may sell in the beginning, but it usually doesn't last long, except when politics intercede and protect it like Walmart has been protected.

Hey you want to be known as the cheapest "sneaker" in town while Nike sells their's for over $100.00? Remember when you were ashamed to admit your mom shopped at KMart?

Cheap can work for a while but if your product doesn't hold up, neither will your client base. And if you price is too low you can't afford to support their needs for long.

[big drunk]

Or lower over heads!