With the change in the configuration of the markets and businesses, companies must think clearly, adapt to the new rules of the game and avoid, as far as possible, immediately implementing the policy of low prices.
Friday, September 11, 2020
The economic crisis resulting from the outbreak of covid-19 has changed the rules of the game in the markets at a global level. Some companies, in their attempt to stay in business, have opted to lower their prices, even to levels where they could incur losses.
In the new reality it is very attractive to make aggressive bets to maintain sales levels, however, that can cause inappropriate signals to be sent to consumers through low prices.
For David Gomez, author of the book "Negocios Inmortales", in the new commercial reality the price should not be "... the only variable and businesses do not have to give themselves away. If you have something nice and solid, you should not fall into the temptation of burning prices and burning inventory, your value proposition should not just be cheap."
In the new business scenario there are companies that migrated from sales in limited geographical areas to the challenge of covering larger markets, being the home delivery system one of the most complex challenges.
Gomez points out that "... there are small businesses that used to sell to the neighborhood and now sell to the entire city by home delivery. We have to redefine the value proposition, refinancing, distribution and even go to disintermediation'."
The delivery service can become a differential of the proposals. Prensalibre.com reviews that according to the author of the book "... 'many companies can say that they deliver at home, but not all of them make a differential delivery, on time, with the same conditions or biosecurity standards."
Maintaining proper inventories to meet demand, having a robust logistics system and an electronic sales channel that protects your customers when they make a purchase, are part of the challenges that businesses face in this new reality.
With "Black Friday" and Christmas approaching, commercial establishments in the region are beginning to apply their sales and promotion strategies, with which they will try to recover part of their income.
As a result of the fast emergence of the new commercial reality, several business models that were profitable until the first quarter of 2020, are now obsolete, forcing business leaders to rethink strategies to survive in this new scenario.
The spread of covid-19 generated radical transformations in the markets for goods and services, in the ways people work, modified several consumption habits, and even changed some tastes and preferences.
The abrupt change in consumer habits forced companies to digitalize their operations and sales, but the challenges do not stop there, as companies will have to implement effective logistics systems to reach their customers.
In the current complicated context, companies must reconsider their strategies so as not to fall into the error of making aggressive discounts, since they could affect the positioning of their products in the medium and long term.
Ariel Baños, a specialist in price management and founder of Fijaciondeprecios.com, explains some of the important conditions that must be considered when deciding to make discounts in an environment of high uncertainty such as that which has generated the current crisis of covid-19.
×
7974Government Procurement Opportunities in the region