Whenever I walk into a retail store, the first thing they say to me is always “Our whole store is 50% off today”, or “ Those shirts are buy one get one free”, and etc. Companies understand that customers only care about price, so the companies often lower prices to stay competitive. Although they get more sales when they lower the price, they are still less profitable than before.

 

In a blog post by Ian Altman, he suggested three steps so the customers can appreciate value more than price. These three steps are to not focus on the price, recognize the value, and find impact together. I agree with these points, as price isn’t the only reason why a product should be better than their competitors. I believe a company should just use their point of difference to set them apart from their points of parity, such as having better customer service. A company should also recognizes it’s strengths and embrace it. Make the product stand out among the other competitors.

 

According to Ian, the results are a lot better, and the sale price will have more to do with profit than revenue. Similarly to the saying quantity over quality, I think it should be value over price.

 

Work Cited

 

Altman, Ian. “What To Do When Customers Only Care About Price.” Forbes. Forbes Magazine, n.d. Web. 19 Nov. 2015.

 

“The Best Way to Win Business on Value Not Price.” Grow My Revenue. N.p., 28 Oct. 2014. Web. 19 Nov. 2015.