Lower Your Prices!

July 18, 2008

You've tried everything else... try lowering your prices.

Before you accuse me of being totally off my rocker, read on:

Mr. Client, I know you have read all the same stuff that I have about employers helping their employees cope with the dramatic rise in prices at the gas pump. Some employers are giving stipends based on commuter mileage, offering work at home Fridays and company sponsored car polls. I was wondering if there was a way I could help you help your people and I came up with an idea I would like to explore with you. What if you agreed to a reduction in commissions and I agreed to a corresponding reduction in the retail price of vended food and beverages?

Not everywhere, but, at some accounts this could be a win-win.

As same store sales continue to slide most folks I talk to blame lack of discretionary dollars. This is only part of the cause of lost sales. Consumer resistance to higher prices is a big factor here. Even if the amount of the commission reduction is exactly equal to your drop in the price, I am betting that the vending operator will experience increased sales as consumers return to lower priced products.