Slow Economy; Should I Discount?

bad-economyWell it appears that the slow economy is going to continue at its current pace. Many companies are trying to figure out how to stimulate sales. When I say many companies I mean cleaning companies as well as the big boys in the Fortune 500.

Restaurants especially those in the casual dining segment such as Chilis, Fridays and Ruby Tuesdays have all been giving discounts to drive traffic. Guess what? It has not worked. Not only their sales are down but even worse their profits have been hit hard.

Pizza Hut has been offering online discounts and have just reported an 8% decline in sales. The pizza wars are creating a war of attrition.

It doesn’t work for big companies and it certainly doesn’t work for small cleaning companies.

Cleaning companies should think about adding on work, at a discounted price while in the home because  costs are lower once in the home. Cleaning a sofa at 30% less while in the home can be very profitable and the customer perceives a greater value.

Customers are more concerned about value than price.

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