A: This is always the trickiest of conundrums!
Recently we had a client with a business in the hospitality sector who was concerned about their pricing of their catered platters. The key recommendation we provided is never skimp on the “winning products” that is, the important stuff that people value most. Look to make savings where you can source the less important products, for less. Also look for competitive wholesale pricing – it pays to shop around. Furthermore, there’s no harm in trialling a 5% price increase and testing the reaction of the market. If you don’t hear any complaints, or notice any drop in inquiries or sales, then you know you are on the right path.
There’s much value to be leveraged in your customer service and brand presence too. Competition isn’t solely about price. Consider sourcing client testimonials in order to instill confidence in your product, regardless of the price. The customers you want to attract are the ones who are happy to pay for quality, so make sure they know you have a quality product available to them. Aim to build a presence around your quality of product and outstanding customer service, and no one will even care if you are $20-$30 dearer than a competitor.