Raise,lower of hold fast

United States
December 2, 2007 2:32pm CST
Lets just say that you now manage a COG store you have really two other competitors in the area that sell COG'S. However your COG'S are environmentally friendly which has a value of it's own. However you start to sell your COG'S for 1.79. After a few weeks you find that your competition, is charging 1.88 and the other 1.90 so you raise your price to 1.85. Still lower than your competition but not quite as low as you were. Now you are still getting customers and they are willing to pay the 1.85 but there no longer seems to be that wow factor of 1.79. Do you roll your price back to 1.79 or stay at 1.85 What would you do ?
2 people like this
4 responses
villageanne
@villageanne (8553)
• United States
4 Dec 07
I think people always love to think they are getting a bargain. People will even purchase items they dont need because it is a bargain. That being said, I think you will Wow! Them even more if you "roll back" the price. Oh my, I just reminded myself of walmart. LOL I hate walmart.
1 person likes this
Impervious
@Impervious (1147)
• United States
6 Dec 07
Great point, I know that I am guilty of that. So we'll see how it goes
max1950
@max1950 (2306)
• United States
3 Dec 07
the price should have never been raised on your part,you would have sold more at your base price and that would have made up for the now extinct wow factor.
1 person likes this
Impervious
@Impervious (1147)
• United States
4 Dec 07
Well I get ya. Like I said I am considering resurrecting the WOW factor of 1.79 there we do have the advantage of being new enough that many people will still experience that WOW factor. There are about 147,000 people in our area and we have only serviced a very small percentage of them at this point. well we'll see
max1950
@max1950 (2306)
• United States
3 Dec 07
you should have never raised the price,the money you would have made selling more of them at the lower would have made up for the now extinct wow factor.
max1950
@max1950 (2306)
• United States
3 Dec 07
sorry about the double dab
APasserBy
@LittleMel (8742)
• Canada
6 Dec 07
I'm not sure what COG is, but I wouldn't sell anything without making profit of it or at least break even. If my suppliers raise their price, I will have to raise mine too. I don't see much choice as long as I still have to pay the bank loan. If you decrease the price and get more customers, will it cover your costs? if it doesn't then probably it's better to stick with it but you will include other services as free especially if your competitors do not offer them for free.