Should I Lower My Prices in this Recession?

The more people I talk to, the more I hear how people are lowering their prices in order to survive in this recession. I just don't think this is the answer! Are your services or products worth less just because other people think theirs are? Take the lead and do what's right for YOUR business. People say their businesses are in a "maintenance" phase, and lowering their prices has helped this. I say I'd rather maintain my worth and keep my prices fair all of the time. High prices don't make sense to me at any time, recession or no recession, and low prices mean cheapening yourself and the worth of your services and/or product(s).  Fair prices also seem to push the uncertain out and the people who are ready to attain their goals in, and that's the way I like it! That means better services that I can provide and more loyal and successful clients. That's a "YAY!" for everyone!  Would you rather have a larger quantity of clients, each at a lower price, or have few fewer clients, each at a higher price? There are many ways of thinking about it, and it really does depend on YOUR WANTS and NEEDS. More clients/customers means a higher chance for word-of-mouth advertising. But it could also mean a lower quality of service if you are too busy with so many clients/customers or unhappy with having to work so many hours for the same amount of money you used to make with fewer clients/customers. And what happens after the recession is over? Will you then raise your prices again to match what you used to charge? How will that look to clients? Or will you keep your prices low and never make the money you were hoping to earn by this time in your life.  With so many options, how do you know what is right for you? There may not be an answer, and that's okay. Either way, you'll be okay. Each route will just take you on a different path, and I've always said, whatever happens is what is supposed to happen. Whatever decision you make is the one that your instincts are telling you to make.  If you choose you have fewer clients/customers right now and keep your prices stable, you may not have as many clients/customers as you would hope for, but you can use this time as "opportunity time." You can use this time to seek new opportunities, to work on improving existing products and services, to really focus on your clients/customers. Just make sure you're comfortable, financially and emotionally, with making the same earnings or less than you were a couple years ago. You may be able to raise your prices in the near future, or attain more clients/customers, but for now, you need to be okay with the maintenance phase. As I said earlier, there are many ways of looking at the situation and no one way is "right." The most important thing is to feel good about the prices that you set your services and products, during any financial time. Good luck! Amanda Winters 2009-10-08T03:48:19Z

2009-10-08T16:42:26Z