Competitive Pricing: The Art of Attracting Customers
Pros
Increased Sales Volume:
Lower prices often attract more customers, which can result in higher sales volume.
Market Share:
Competitive pricing can help you gain a larger share of the market, potentially establishing your brand as a go-to choice.
Customer Attraction:
Price-sensitive customers are more likely to choose your product or service over competitors.
Cash Flow:
A higher number of sales can lead to better cash flow, which can be useful for covering operating expenses and investments.
Cons
Slim Margins:
Competitive pricing typically leads to lower profit margins per sale, which may affect your overall profitability.
Resource Demands:
Dealing with a larger customer base may require more resources, including customer support and infrastructure.
Sustainability:
Depending solely on low prices can be challenging in the long term, as it may not cover all your costs or provide sufficient profit for growth.