The Ludicrious Act of Penny Pinching
Imagine you're playing a game of golf, your practice round has gone amazingly. Then the tournament starts, only there's been a slight rule change that will drastically alter the round. Imagine, for every hole you complete, the hole gets that little bit smaller... and smaller... and smaller...
That's what dropping your items by 1p does to your bottom line, which results in nothing more than a race to the bottom. Your profits are that golf ball and you want to sink it - not shrink it.
That profitable item that made you a few quid in the past, toast... dead in the water... eaten by an alligator.
It isn't competitive pricing, it's destroying a products value, and you are the long term loser because you've put your profit into a deficiency.
Sitting there all day reducing your items by a penny isn't good for your health, you're better off getting your work done and out the door because after all, time is money and I would rather it be valued in pounds and not pennies.
If anyone says "Well that's business"... it isn't. Obviously, everyone has an opinion and please feel free to attempt to change my mind.
1 reply
Seller_d8YGbIjNqwFxn
Whilst I agree with a lot of you say sometimes you have to match the price of a competitor who is selling cheaper than you.
It maybe better to sell at a reduced profit than not sell anything at all. It maybe better for cash flow to sell at a reduced profit than sell nothing at all.
Ideally I would like to sell my products for the maximum that I think a customer will pay for them. To be realistic if I did that I would probably sell very little and not make enough money.
Also I would say most people who are dropping to match by a penny are using repricing software and it is not taking any effort to do.
