Price Monitoring

We know that some customers are highly motivated by value for money and, as a result, are the most fickle. They might say that quality and service are more important – but don’t believe it!

Price is always importance to fickle customers. Even if you try to concentrate on meeting their needs, they will always be trying to get a better deal than they got from you last time.

Eventually, if you persist in trying to sell to them, they will grind your price (and profit margin) down with threats and comparisons with the competitors until you just simply cannot go any lower. They will eventually move on to a business who’s cheaper, and there will always be someone else who will be willing to give away a little more margin for a little more business.

If you persist in dealing with customers like this, you will end up attracting more of them because your whole style of business will become focused on offering the lowest prices, which means small profits on each sale.

When things are as tight as that, the only thing keeping you afloat will be the huge volume of trade that you need now to do to cover your overheads with those ridiculously low margins.

Lose one big customer are you are gone!