Just read a blog post about the temptation to lower your prices when things aren’t selling.
Assuming your prices are set correctly (whatever that is) in the first place, it makes a lot of sense.
Looking around, I sure haven’t noticed many other sectors slashing prices. Sure, there are the department stores that have huge retail markup having 50% of sales, but you can be sure they are not selling below, or anywhere near, cost. If they are, they’re making it up elsewhere (loss leader to get you in the store) or they’re teetering on bankruptcy.
I thought this really fit in with a common theme I’ve been seeing out in the pottery blogosphere about how people are doing in the down economy. The thinking that makes the most sense for me is that, yes, the big expensive pieces might not be selling right now, so you might want to offer smaller, less complicated, time consuming pieces if you don’t already. But offer them in addition to your other pieces, because you just don’t know what will sell on any given day.
Check out Molly Gordon’s blog here:
Why lowering your prices doesn’t work and how to resist the urge