Hold Prices in a Crisis

During an financial crisis, you may have tendancy to try to cut your prices to the bone. This could have a very short term effect on cash flow but it may hurt you in the future. When you reduce prices so much that prople feel you are desperate, the purchasers who buy your products or services will never look at you the same again. They will expect you to either go out of business or just hang on by a thread. They will worry about after-sale assistance and returns and they may not buy gift cards.

This strategy could cause them to shy away from any products that need future service or replacement parts because they're afraid that you won't be there to help them. They might never even consider your regular price again and always expect or wait for the deep discount. They might be hit-and-run customers who have little or no loyalty to your business and will go elsewhere to spend the rest of their money.Try to hold your ground on prices or just reduce a little to encourage sales.

More on financial crisis ideas in chapter 17 of my book "90 Days to Success as a Small Business Owner"