If you're feeling the pressure from your board or VC to prove you can get traction and the right Product-Market-Customer Fit, dropping your prices may generate sales, but at what actual cost? It's time to step back and ask yourself what the real problem is and whose problem it is.
During the ideation, validation, and commercialization stages, did you focus on understanding your Product-Market-Customer Fit? Did you take the time to understand the challenges and issues your target market and customers face? Did you know the value your solution delivers and the price customers were willing to pay? Did you use this understanding to communicate clearly with the right messaging? Did you wrap this up in a viable Go-To-Market strategy? Did you communicate this to the VC when completing the funding round, and did you communicate the plan to the board?
If you answered "no" to at least one of these questions, that's likely why you've panicked and gone down the rabbit hole of discounting. Discounts are short-term fix that delivers either no-profit or low-profit customers and is no guarantee that they will be retained as long-term customers. Discounting is expensive and gobbles funding, increasing your burn rate.
You should have done all the above and concentrated on selling on value. It's more difficult, but it's a lot more profitable and generates higher retention rates. A sales and marketing team must understand the product's value and implement a value-selling model.
I've worked in businesses where value selling is core, and they are always more successful. On the other hand, I've witnessed panic selling techniques where sales management hasn't understood the product's value. If you find your business in this position, it's time to take action and get it back on track.
The first step is to book a free 60-minute 1:1 call with me. Let's discuss your business and identify the issues that must be addressed. With my expertise, we can create a plan to increase your sales and profitability by focusing on the value your product brings to the market.
Don't let panic selling and discounting continue to harm your business. Take action today and book your free call with me.
Book a 1:1 using this link: https://calendly.com/gorilla-revops/discovery-chat
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