Keep your customers by lowering the price. Can it really be done? Does it really work? For some customers that are entirely interested in price, price cuts are welcome. They are welcome to customers nearing bankruptcy, to those who produce a shoddy product or service, and to those who are not at all concerned with their customers' satisfaction. While keeping customers is an important practice, first you may want to identify whether they are really good customers and worth keeping. If they cost you too much to keep, and sales acquired from them are not all that profitable, it might be better to spend your time elsewhere.

But is lowering prices the best way to keep customers? The key here is whether the customer is considering switching to another competitor. Is it about price? Is it quality, reliability, delivery, or your personality? In all cases you must determine what exactly the "switch interest" is based around. Then make a more informed expert response.

It is important to remember that lowering prices may unfavorably impact the following:

Your image

Product's quality

Revenues and profits

Reputation

Long-term goals

Effectiveness of your products and/or services

Furthermore, it is best to identify why you are cutting prices. Perhaps a change in the product, the promotions, your costs, your distribution, and your service may keep your customers. Ask them why they are considering a change. Change may be costly, troublesome, time-consuming, so they must be doing it for a good reason.

The last and most often neglected reason why not to lower your prices to keep customers is that the competition can match the price change instantaneously. Then you are still in the same situation trying to keep your customers with lower prices and the same costs to cover. Think about it long and hard. Change something that is truly meaningful to keep the customer.