On September 15, 2009
Add Value Rather than Price Cuts to Win Customers in a Recession
How do you make money in a recession? Marshall Goldsmith suggests three basic methods in his Harvard Business Publishing blog, Making Money in Chaotic Times: Lower your prices. Introduce a low-cost version of a product you already offer. Add additional benefits to your offering. Your strategy, of course, depends on what you are selling. But in general, I find alternatives #1 and #2 problematic. If you lower your prices, it will be very difficult to raise them again on the other side of the recession. And a low-cost version of what you already sell can end in cannibalization of your existing offering with a lower-margin product. But adding additional benefits to your offering, that sounds exciting on a number of…
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