A short YouTube monologue by Donna Genie (Donna Bordeaux) arguing that being 'too affordable' can harm businesses. She explains that low-price strategies often suit very large firms (e.g., Walmart, Southwest, Costco) that can negotiate supplier pricing, and urges smaller businesses to align pricing with business objectives by emphasizing service quality and unique advantages rather than competing on low price alone.
Cheap can harm your business. I'm Donna Bordeaux and I work with a lot of businesses to help them get their pricing aligned with their business objectives. I've witnessed companies that struggle to keep their heads above water and keep cash flow coming, only to realize it is a pricing problem. No matter how great the product or services that you offer, you have to have a price right to have a successful business venture. We all know the brands who price themselves into a model of offering affordable products. Walmart, Southwest Airlines, Costco. Now I'm not saying those are bad places or good places, but we know their place. One thing you'll notice is that those are all big companies. Many times the low price leader has to be a giant company because they're the only ones who can negotiate pricing from their suppliers. So I urge you to make sure that your strategy for marketing is not solely based on price. It's not all about the price being low. It's about the quality of the service and it's about having your unique advantage be part of your pricing.
