Nowadays, people know the price of everything and the value of nothing. OSCAR WILDEMany sales and marketing pundits claim there is no such thing as price pressure.
Are these claims true?
Or are such claims just contrary, quotable and fundamentally flawed?
I'd argue the latter. What about you?
Let's examine a possible parallel. You go to the doctor, because you're experiencing back pain. The doctor can't see your pain, feel your pain or objectively measure your pain, so he declares the pain is not real.
It's a fiction, simply a figment of your imagination. In fact, all pain is a fiction. It doesn't exist.
That could be true. Or it could be something isn't functioning properly, which sends out a warning signal. This signal can be subtle and tolerable, a small twinge or persistent low-grade ache, or it can be a full-blown klaxon indicating severe problems.
Like pain, price pressure is a warning, and a little bit is probably a good thing. It keeps you alert, engaged and aware. It indicates market forces are alive and functioning moderately well. It indicates a healthy level of competition in the marketplace.
Extreme price pressure, like extreme pain, is a signal something's not working quite the way it was designed to function. We'll tackle the extremes in more depth at a later time.
Meanwhile, ignore the pundits. If you're experiencing external price pressures, you're not alone. Business people, from micro-business owners to those who manage large companies, have helped us identify 15 common forms of external price pressure.
Take a moment to identify the specific forces you're confronting. Then, take another to start mapping a strategy to counter or neutralize their effects.
In today's marketplace, it's way too easy to know the price of everything and the value of nothing, including the value your products and services provide.
Price Pressure: External Forces
Related
Price Pressure | Internal Forces Revisited
Price Pressure | Is it Hurting Your Bottom Line? (white paper)
Price Pressure series