Should we always reduce prices if want to increase sales? - Marketing And Advertising Agency Accra

Growing up, I have realized this strategy of reducing prices of either service or product in order to increase sales, from boutiques to beverage retailers and wholesalers. This question stroke me harder when I chanced on a Billboard advertisement mounted by a popular beverage company on the street of Accra with a nice caption “1 cedi p3” , the next I saw a similar TV Ad with a similar message “ya tete so “. So the question came back ,

What happens to smaller businesses who can not constantly reduce prices to match up the competition
How long can we keep on reducing prices, probably until companies reduce to zero and are willing to offer for free
Now is this not more of a threat to businesses than advantage

Now no matter how low you offer your product or service other competitors can lower theirs to beat your ass

How Do We Sort This Out

You can always be secured with how your product or service be priced by creating a monopoly in your field of operation, by asking the question who need what I offer How is what I offer be perceived useful and helpful than the usual perception of “let me try another piece of this today to and see” the idea of the fact that you only care about how much you want to make out of what you offer instead of solving their problem to create trust.

Prioritize consistency And Create A culture

create a story that resonate with what you offer and constantly outlining the core objectives of what you do, this establishes a culture that involves the buyer, makes them feel important and seeks helps them solve the specific problem or satisfaction they want then the price wouldn’t be a problem.

You Are Not Selling To Everybody

often we confuse ourselves with how our businesses should be marketed. Now let consider this question .How visible will a bucket of Azar Paint in the Ocean compared to a swimming pool? you don’t have to sell to everybody after clarifying who what your offer is for ,concentrate on satisfying those available. Selling to the smallest viable group who are willing to purchase a subscription is more secured than selling to everybody who will definitely move on to other offers in search of unspecified desire.

Case Study

The story of how Mr. price Kofi Amoabeng the co founder of UT bank which collapse in 2017 during Ghana Banking Crises

He simply changed the face money lending with a simple message “24 hour Loan” as at the point of introduction this sounded impossible since bank loan processing could take up to a year to get it disbursed. He stood by this, granted people loan with lower rate and shorter duration, this was clearly to sort out traders who needed quick cash to complete transaction and return monies in less than 3 month. a mortgage seeking clients clearly do not fit here. this group were often ignored by banks who perceived them as a risky section to disburse loans since most were not featured on government pay roll. But the idea has since spread and adopted by banks and with MTN loans implementing same and even at shorter duration.