Should I Lower My Prices Because Of The Economy?

[sergman]

Are my prices a bit high for this economy? This is what I charge for Direct Mail
6,000 direct mail ads for $750.00

11,000.00 direct mail ads for $1,375.00



So basically I charge 00.08 per ad but I only distribute by 6k and 11k, i don't charge clients extra for color, size, postage or mailing list. Last time I checked that is less expensive than other forms of direct mail. Still you as business owners, would you pay those prices in this economy?

I would pay those prices, but maybe im being biased

[torka]

Personally, I think if you're already less expensive than other forms of direct mail, I wouldn't reduce your prices further -- that just sets the bar lower and you'll just have to go back and increase them again when things heat up again. (Even in good times, price increases can be hard. Don't make yourself have to go through that if you can help it.)

Rather, I'd try to demonstrate the additional value they get from your service. Focus on all the stuff you toss in for free, for instance. Try to help your customers realize how much further their money will go with you.

The key is the return businesses will get from using your service. Smart business people will focus on ROI. Make a lot more in profit than you spend to start with -- that kind of thing sounds good, even in a down economy. (And remember, not every business is necessarily negatively affected. If you can, find and focus on sectors that are doing relatively well.)

My

--Torka

[pusz4frog]

Honestly, I think if you believe you are providing more than what you are charging for, then deliver even more than that, you are charging the appropriate amount.

You truly can't put a dollar amount on good quality anything doubled with kiss *** customer service. If you're going to charge top dollar - then deliver top dollar service.

Best wishes to you.

[youbetcha1018]

Your prices are actually not expensive. Your prices are just fine and I suggest that you do not change the prices you charge to your clients. These prices are just appropriate.

[Thuva]

You don't necessarily have to cut your price to increase sales in bad economy. A better strategy would be to position your service as a cost-effective way to market in tough times. Show other business owners how direct mail will help them cut costs in reaching their existing customers as well as new customers.

[Samuel Craig]

No, maybe offer more value added service behind the scenes but don't cut your prices.

[jrobconsult]

You have good prices. I would suggest to work to get some testimonials from previous happy customers and add to your website and make a book of them in your business locations for customers to see. Testimonials are often underutilized by many businesses.

[VenalTech]

Low prices can make potential customers think you don't do as good a job, or that they are receiving less of a service or product.

I believe the old saying, "You get what you pay for," and often won't go for the lowest price. That doesn't mean I go for the highest price either, but when Product A costs $500 and Product B costs $49, but they both do the same thing, it makes you wonder.

[mattcarpet]

Ah but VenalTech, in this day and age, especially when it comes to graphic design, confidence decides pricing not ability...meaning you might think your getting a better deal to get the guy for 500 instead of 50 but I've seen it happen quite often that the guy selling for 50 is a much better, albeit less confident designer, I've even see your guy for 500 be a total wanker when it comes to professional design.

So in other words in graphic design ask for samples, or a test run, or something to decide, never ever assume, because skill levels and confidence vary more in graphic design than any other industry, and as such so does pricing...safest way to keep from getting ripped off is to shop, and compare.

[zmonique2007]

I remember this quote, “You will be judged by what you do, not what you say.”

Don't slash your price, just improve your service. Good customer service is all about bringing customers back.