Recession-Proof Your Consulting Firm
The economic downturn has caused lots of companies to call into question their business tactics and pricing strategies. While reconsidering marketing practices may make good sense, you should not significantly change your pricing. An untimely price reduction can cause great financial stress on a company, sometimes driving them into bankruptcy. When in doubt, don’t turn to price reduction. Cutting prices with the hope that you will attract more business is a surefire way to reduce profitability.
Then what is the solution?
Conduct a Business Analysis That will help you to develop a clear image of how your business is working, considering the sum of all the constituent parts. After that, assess how your business has been developing and acknowledge areas of possible improvement. Track the success of your improvements over time, adjusting the changes so that they optimize the efficiency of your overall goal. In such a competitive business climate, making just the right changes is crucial to your success. Finally, make certain that your pricing matches the value of your services—not just your cost in providing them. If that means increasing prices, do it.
Refine your Marketing The solution to surviving a recession isn’t cutting prices but smarter marketing to your target customers. Determine who you best customers are and research the best way to market your services to them. The most successful companies are the ones that can take advantage of a recession to enlarge their market exposure and attract more business.
Pricing Consider new ways of offering your goods and services that demonstrate their value to your best customers while remaining as profitable as possible to your company. Next, increase your marketing for these packaged products and services. Your business strategy should take careful measure of the effectiveness of changes to both your pricing strategy and marketing—both have the potential to make or break you and should be developed to maximize your return on investment for each product.