COVID-19: Now Is Not The Time To Drop Your Prices

This is a really tough time to be a business owner. Many companies are already experiencing a decline in sales, while others have closed their doors altogether. 

We’re here to tell you that no matter what situation you’re in, you still have options to continue generating business in some capacity. But this is clearly not an easy task.

Your typical customers are probably frightened about their own jobs, families, and finances—making them much more selective about the money that they do spend. As a business, you are no longer competing with direct competitors in your industry; you’re now fighting the entire economy of purchase decisions.

The question is no longer, “which restaurant do I choose from?” but rather “do I spend my money getting takeout for my family, replacing my aging vacuum cleaner, or subscribing to that online class I’ve been eyeing?” 

So what can we do?

It is now your job to prove to your customers that your product or service is exactly what they need right now to solve their problem or provide the value they are seeking.

During times of economic contractions when all businesses are vying to capture the same dwindling purchase decisions, one common response is to drop prices in order to attract more sales. This is not a good idea. 

Price Vs. Value

Unless you are Walmart or a business that has a model built around being the lowest-priced provider, dropping your prices to try to drum up more business will only devalue your product or service—a move that could be detrimental to future sales. Your lower prices would also probably not even make up for the loss in sales you are seeing, so would not be worth doing anyway.

Rather than cutting prices or having blowout sales, look instead at increasing or showcasing the value you are providing to your customers. Your product or service’s value is displayed through the packages and amenities you offer, coupled with a clear message and focused marketing strategy. 

You can’t expect to make a single post on Facebook telling people that because they’re now spending more time at home, they should get their carpets cleaned. Instead, think about what problems they’re facing, what they’re afraid of, and how your product or service will solve and over-deliver value to alleviate their troubles. Understand where they’re now spending their time (physically and digitally), how you can best reach them, and what your strategy to contact and follow-up with them will be. 

Create Your Strategy

So, what are you going to do next to support your business? Make use of the situation, devise a creative strategy, and get your business even further ahead by the time things start to level out. Economic decline will not last forever, so don’t let a change like this impact your ability to adapt.

If you need help coming up with your strategy, talking through your ideas, or just getting advice on what options you have to reach your customers, contact Ivy + Atlas Business Consulting here.

To review our Small Business Coronavirus Checklist, click here.