As the recession bites, take a minute now to consider if you can be all things to all customers. Can you really sell at the retail prices that will keep your distributors happy AND give your direct retail customers a good deal? After all, one of the advantages you have as a small company is that you do not have to do a 1 to 8 or 1 to 10 cost/price ratio, as all the "biggies" must. You can sell for a price that makes your goods far better value - and in the current climate, that counts more than ever.
We solve this dilemma by setting our recommended retail prices higher - for distributors - and giving our direct customers a deep discount. It's one way and seems about as fair as anything can be. But is it the time to consider other ways? Look at your customers, your distribution and your prices (and, as ever, costs) and see what's really working and what needs to be changed.
If you can provide value that's way better than the corporates can - whether because of individualism, innovation, price or a bit of all three - don't hang back, now's the time to make this happen.
Labels: costs, distribution, price ratio, pricing, recession, rethink, rrpLinks to this post