Pricing Challenge

The majority of our competitors are now pricing in the same way. They price a short list of products very competitivly maybe even sometimes at under cost to buy the business and then when you buy "off list" they absolutly hammer the client.

At TLC we've always given fair prices accross a huge range of products. We have over 6000 of the most used products that we give really good discounts on. We will also give you a short list of products at specially low prices.

Here's the challenge. Do we switch to the method that others are using and make more profit or do I stick to what I believe is honest and fair and stick to what we've always done? My Mrs says perhaps we should change as we would make more money but I have moral issues with this system. Am I wrong to feel this way?

Listen if what you're doing is working, keep doing.. if its not.. get on it or turn your volume up on being different... no one does biscuits, nor looks like Kenny Rogers/Father Christmas.. << therefore no one can compete on that level.. skew the playing field in your favour.

Thats the stuff ^^^^

We love you Tom!

As Brad says, if it isn't broken don't "fix" it!

Excellent point Tom, I find that we have local competitors that do the same (near cost short list, no discount off list) - but it's not sustainable as businesses who do this tend not to focus on service, loyalty and generally do not build a rapport with their clients.

In my opinion, I always think it's best to maintain an honest, accountable and across the board offering - just as you do now.

A customer gained on price alone is very easy to lose, a customer gained on trust & fairness will always work with you ongoing.

You have an excellent reputation which will always stand you in good favour with clients who will be fair to you.

Tom,

I need some January to December dividers, the extra wide ones, do you do those?

I think Nick makes an excellent point - clients gained on price alone are very hard to keep. Keep your integrity and your loyal customers and show how you differ from the rest.

We do Doug. I'll PM you a price

Do you do coloured printed pens too?

Paula had Purple ones.

Tom,

To answer the question. Pricing is a tool, use it.!

I buy my stationery from Viking Direct because it's next day, on account and I have a chunky catalogue that has everything in it. When I order they have 20 reams of paper for £ 5.00 // I never buy because I don't want that.

All I want is my stuff delivered when I need it.

From a holistic marketing point of view, I'd aim to take 10% of business away from your 10 competitiors. Then you'll be 100% better off.

Have a banana product to draw people in. Chocolate biscuits doesn't do it for me, I already have them. Something cheap at the front of the store that is clearly a "good deal". These are nothing more than "attention grabbers", advertising headlines. Add you wonderful customer service and personality on top and you've got a winner.

Marketing on price is never a good thing, no matter how competitve the market. There will always be someone selling cheaper due to better buying power and you'll bottom out your margins.

I use TLC because of the MLKT thing and not because of price, I think your customer service is your strongest selling point to be honest and price is not something you should try and compete on. When I order something it's because I know you are ethical and treat your customers fairly. Not necessarily keep doing the same thing but build on your strengths.

Denise

Hi Tom

I have the same issue as you. I could price the same as my competitors as I know all the tricks they do, but would I sleep well at night, probably not.

At the end of the day, if you are delivering on price and service and you are comforable with what you are making, then stick to it.

Teresa

p.s. I keep forgetting to order a calculator - preferably a Canon LS-100H - do you do them?

p.p.s. I buy from you because I am too busy in my business to faf around looking in catalogues, I can ring up, be suitably vague about what I want and your team always manage to understand what I want and send it next day!

Tom - for me, you have answered the question. You have moral issues. Never step out of them. It is a part of who you are, and doing violence to them will never sit comfortably with you.

We used to be Viking addicts, like, I suspect many people. It has not taken long to work out that overall my stationery costs are a bit lower now.

But more importantly? I can phone up and speak to some people who are chatty, pleasant, and helpful.

Like Paul says, live and breathe what you believe.

As a customer, its not about price, its about trust - that it will arrive on time and if it doesn't there's someone who gives a toss that it hasn't.

QSP

If you have the quality and give the service don't over worry about price.

Make a virtue out of your pricing policy.

Take the 10 worst examples of ramping and use it as a marketing tool to prospects.

You can use it defensively as well to existing clients - we only charge you this...... V would charge this.