Finding new business 9: an alternative to cutting prices

How can you attract business without cutting prices? We know cutting prices can devalue your product or service and, after price drops, it can sometimes be difficult to return to your normal figures.

On top of that, as I’ve said before - and I daresay you’ve heard it from others - getting into a price war with competitors can put you on the slippery slope to disaster and demise.

So what can you do instead?

Today’s tip is one I’m putting into practice in a new promotion - it might be a viable approach for you too.

You see it’s not just us business owners who have problems in a recession. Fund-raising for charities is more difficult as well - many lose contributions from business owners who can no longer support the charity when things get tough.

But, let me ask a question.

If you have to make a purchase and are given a choice between two companies, where the quality, customer service and price are a match but one offers to donate a portion of their revenue to a charity… which would you choose?

I suspect you may feel strongly inclined towards the charitable option. And, as a result, the company offering that promotion may achieve higher sales; attract more customers than they normally would.

How is this different to price-cutting?

If you are or have considered price cutting then you are expecting to reduce your margin. By donating to charity and accepting a lower profit without dropping your prices you are not undermining your market position or credibility. When the promotion is over your prices are still at your normal level.

Will this idea work?

I dunno! Truly - I think it will, but it is not one I’ve done before… I’m testing it as I write this post.

If you are subscribed to any of my lists or have bought any of my products or services you will be receiving information about this promotion - either by post or email.

If you are not subscribed and would like to see the letter I’ve written for this campaign (or maybe even see if the offer is something you’d like to take up) you can read it here Charity Promotion

Something You Should Know

If you plan to raise funds for a specific charity and doing so generates business, you need to be aware of the Charities Act 2006.

The Act states you cannot name or use a specific charity’s logo without entering into a commercial contract in which you give some indication of the amount you expect to donate. Some charities (especially national ones) will only enter into a commercial contract if you agree to a specific minimum contribution (usually thousands of pounds).

Read my Sales Letter to see how I’ve used this approach without setting up commercial charity contracts.

Do you think this idea would work for your business? Yes? No? Share your thoughts; post a comment using the link below.

~ Carol Bentley