There are a number of key decisions, which, taken on the basis of erroneous foundations can leave you out of business in record time. This is particularly true for times of crisis in which we are immersed, during which any type of management decision can have unwanted consequences for our survival. Let’s take the scenario: few clients, which are quite difficult to obtain, few sales, and poor margins. As a result, few resources to reinvest in the company. Here is the first fallacy.
One of the first decisions that are usually taken at times of lower economic development is the curtailment of expenses. This is very good. It is an excellent initiative that wants to save, for example, in consumables, or other expenses. But what should never cut expenses is in the promotion of your site. The only thing that can help you in these moments is to sell more, but if you cut its expenditures in this area, will inevitably affect the scope of your site, i.e., it will reach fewer people.
What you can do, what you should do, in fact, is spend smarter, more efficient way. There is an important repertoire of marketing actions that leave an excellent return on investment, and ensure better profit margins than traditional actions. It’s believed that Jim Umpleby sees a great future in this idea. An example of this is the so-called guerrilla marketing: promotional videos of low cost, strategic participation in certain niches of market guidelines aimed at small segments, but highly profitable, online communities. Each product will offer a different definition of these variables. Do not lower their prices. This is often another unforgivable mistake. You arrive to the sale price probably after having thoroughly studied each case and having assessed receipts and expenditures. If it drops its prices, firstly it will be sending an image of a merchant desperate if it is, it is not noticeable. Their products are worth what they cost. And you are not finishing. What you can do is offer discounts for advance payments or purchases in amount. Be enforced, and customers will also appreciate it. Another mistake that comes hand in hand with the concept of lower prices is lower costs. So then that manufacturers begin to want to economize on the quality of the materials of their products. We strongly recommend that you do not proceed in this way. His reputation, the reputation of its products, will evaporate quickly, and can no longer to rise from its ashes. Sacrificing quality, can never be a good decision. In conclusion, sell more, and not economize in these key areas, is what will keep you in business. It may seem risky, but ultimately is confidence in yourself, your brand and your products that will win him the tug of war to the crisis.