Experience has shown me that many companies give discounts because they cannot justify a higher price. Therefore, in the absence of arguments, it is a good discount. The lack of differentiation is the source of many problems, including the pressure to lower prices.

Few strategies have both commercial impact and differentiation. A differentiated product or service is unique from the rest, providing alternative standards for the market. A differentiated brand is less vulnerable to attacks by price competition and will be a compelling reason for customers’ preference.

The solution to give less discounts

The solution to give less discounts: differentiate…

A few years ago I wrote an article referring to the most important question that every company should be: Why buy from you rather than your competition? When the answer is not clear, it is when the client begins to press for the price. If the customer does not perceive a difference, it will try to justify why they should pay more for what you offer. And if their arguments are not convincing, he will push for a discount. It is a simple survival mechanism that the client has to maintain, as you would any of us, the balance between what you perceive you are getting and what you are actually paying. Remember that the price is a relative perception of value.Continue reading →