#120: Tactical Tuesday: The Downside of Lowball Pricing

<p><strong>OVERVIEW:</strong><span style= "font-weight: 400;"> </span></p> <p><span style="font-weight: 400;">Jason A. Duprat, Entrepreneur, Healthcare Practitioner and Host of the</span> <em><span style= "font-weight: 400;">Healthcare Entrepreneur Academy</span></em> <span style="font-weight: 400;">podcast talks about the downsides of selling low-priced products and services and emphasizes the importance of knowing your numbers.</span></p> <p><span style="font-weight: 400;"> </span></p> <p><strong>EPISODE HIGHLIGHTS:</strong></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Many entrepreneurs believe offering the lowest price is the most advantageous strategy when entering into a new market.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">While it can be beneficial in some cases, Jason doesn’t recommend considering this as your final business model.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">If you’re launching a new product or service, offer a better pricing option versus undercutting competitors by offering the cheapest price. </span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">Ideally, your products and services should be sold based on the value delivered. Express the value and quantify it by using customer reviews and testimonials.</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Aim to become the best on the block vs the cheapest on the block. </span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">Undercutting the competition is a good strategy for big box stores like  Walmart. Sam Walt went 10 years without a profit but he was well capitalized. For small businesses, it’s a losing business model.</span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">Remember it costs time and money to acquire customers. Consider the cost for email campaigns, ads and staff to manage the acquisition process. </span></li> <li style="font-weight: 400;"><span st