Donna Genie (presenter) examines how pricing that is "too affordable" can harm businesses. She frames the issue for entrepreneurs, argues that low-price leadership is typically a strategy of very large firms (e.g., Walmart, Southwest, Costco) because they can negotiate supplier pricing, and promises pricing strategies and guidance to align price with business objectives.
Can your pricing be too affordable? There's an often overlooked factor that many entrepreneurs don't think about when they price their products and services. And today I'm going to share with you some pricing strategies and how to look at your pricing to make sure you're not affordable. 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. No matter how great the product or services that you offer, you have to have a price right to have a successful business venture. Today I'm going to share with you the surprising consequences of being affordable. First, we all know the brands who've priced 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 to match their pricing strategy in the market.
