Before you jump to discounting your prices, consider this. A recent McKinsey study found a 1% increase in price (if demand stays consistent) increases operating profit by an average of 8.7%. The opposite also holds true. So what can you do instead?
Start with data. Get a clear understanding of where money is leaking and exactly how much revenue is gained from every transaction.
Gather intelligence. Avoid the hype and rely instead on what your customers are saying.
Don’t rush to drop prices. Pricing software can help you find weaknesses and opportunities.
Test for full visibility. Testing different market strategies shows you exactly how any small change will impact your bottom line.
Launch your strategy. Choose the best test strategy for your overall goals and circumstances.