Every day, I get to speak to quite a few small business men (women) in various industries. All these interactions in various industries help me to hone my perceptions so I can help people in other industries. The challenges are almost always transportable from one industry to another.
The interesting thing is that when a business has already decided to be the low price leader, they have gone to the point of last refuge.
And usually at that point I cant help them. Once they decide to be that low price leader, they cut back on service, hours, product innovation,old and new media and are relying on good old fashioned greed, “They’ll come in because I have the lowest price and everybody wants the lowest price.”
As I pack my bag to leave and respectfully tell them I really cannot help them, they always ask “why?’ My answer is always the same.
“Ask Montgomery Wards, Woolworth, Korvettes, Klein’s, Ohrbachs and Fortunoff stores. All low price retailers. And all out of business. The low price position kills. It is the sword of Damocles that hangs over your head. Use it at your own risk.”