Wednesday, March 02, 2011

Puncturing the Low-Price Myth

My column in this week's Financial Post looks at a common myth: that you should never market your business or product based on price alone. Business and consumers alike are looking for more value today than ever: if you can sustain that advantage over time, why wouldn't you promote it?

The column focuses on U.S. entrepreneur Jerry McLaughlin and his company – a promotional-products retailer that restructured itself to be the low-price leader in its niche. It has never looked back.

Excerpt: Immediately after reducing its prices across the board,

“the percent of website visitors who made purchases shot up to 65% from 15%. McLaughlin says profits on the additional sales more than made up for the lower profit margins: ‘That means we should have done it anyway, whether it was our long-term strategy or not.’"

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