In Price Pressure: Fact or Fiction?, one sales executive described how over time the protracted recession and recovery had reduced pressure. Why?
As companies streamlined and laid off, there were fewer workers at all levels. Price pressure receded as companies focused on acquiring material and parts, so they could push product out the door.
A small business owner shared another perspective.
The entire business landscape has changed, the owner explained. Many customers and competitors were hit so hard by the recession, they closed down or retired early.
The economy overall may be in recovery, but this trend has continued. The impact of these changes has been challenging, says the owner.
The good news, there’s less competition. The bad news, the company’s lost more than a few core customers. It’s streamlined operations, slashed expenses, and postponed upgrades and equipment purchases.
It’s putting more time, energy and resources into marketing and sales than at any point in its more than 20-year history. The time from initial contact to final sale is longer, and customer budgets remain tight. To compensate for this, the company has had to rely on its cash reserves, which is a concern.
Pressures shift up and down, the owner observed, but in combination, the factors prevalent in our industry make us more vulnerable to both real and perceived price issues.
So, what’s your POV? Share your perspective by voting in our simple survey (right sidebar) and adding your own price pressure stories and examples. (Survey closed May 8.)
To learn more, read our article, Is Price Pressure Affecting Your Bottom Line? at mfrtech.com and our B2B Write Now white paper, Price Pressure: Is it Hurting Your Bottom Line?
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