Why Cutting Prices Is Like Cutting Your Own Throat

Sara

In the contemporary marketplace where competition has become cut throat, however, many vendors may decide to cut prices for all the wrong reasons. In the end, they end up cutting their own throats! Here are a few reasons why cutting prices is a bad idea. 1. Perceived value Most people associate low prices with low quality. This implies that your customer may be misled by your low prices to think that you have compromised on quality. Therefore, although you might be selling the exact same quality, expect your customer base to reduce substantially. According to Steve Posavac, low prices

Can lead to law suits Believe it or not, cutting pricing can lead to expensive lawsuits you were not expecting