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Kick The Discounting Habit: Step One For More Effective Pricing

机译:消除打折习惯:更有效定价的第一步

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摘要

Price discounting has become the crack cocaine of business. A brief high is followed by devastating effects on both revenue and profits. The addiction starts when managers decide to use price discounts to hit revenue targets. They assume it is only temporary, that price discounting is a quick fix to a small problem. Soon that quick fix becomes a major element of business strategy. Eventually discounting becomes the tool of first resort to fight the effects of a market downturn, intense competition, and increased sophistication of buyers. It is a futile strategy. Customers know that if they hold orders for the end of the quarter, even the strongest managers will panic and fall to the siren's song of the price discount. The net impact of this terrible habit is that margins and profits fall. To make matters worse, when markets begin to slow, those price discounts begin to cause revenues to drop.
机译:价格折扣已成为企业的可卡因。短暂的上涨之后,对收入和利润均造成毁灭性影响。当经理决定使用价格折扣来实现收入目标时,这种上瘾就开始了。他们认为这只是暂时的,价格折扣可以解决一个小问题。很快,快速修复便成为业务战略的主要内容。最终,折扣成为抵御市场低迷,激烈竞争和购买者日趋成熟的影响的首选手段。这是徒劳的策略。客户知道,如果他们在本季度末持有订单,即使是最强大的经理也会惊慌失措,陷入价格折扣的警笛声。这种可怕习惯的净影响是利润和利润下降。更糟糕的是,当市场开始放缓时,这些价格折扣开始导致收入下降。

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