The raging debate: Should Apple cut their prices?
It’s been in numerous blogs this past week and it seems to be gaining momentum in response to the newly successful Microsoft ads. People think Apple may be getting ready to cut their prices, the question is, should they? We are all paying attention because it’s a question relevant to all businesses.
Here’s my 2 cents:
They are higher priced, but they are a leader in innovation because they dedicate the money to development projects. Cost cutting isn’t innovative, it’s the standard answer. It wouldn’t be true to their Brand. Instead a two pronged approach would work best.
- Existing clients: In hard times you look to your current clientele and offer more. Free expanded education (in-store and online) teaching how to get more value from what they’ve invested in, and backing that with enhancements to their already strong customer support. This is something consumers, clients and companies appreciate and remember.
- New Clients: Educating the public on cost of ownership would probably benefit Apple. Yes, their is the cost but here’s what you get: value (software included), flexibility (can run 2 platforms), simplicity, support (geniuses), and easy maintenance. When people see these benefits coupled with the support existing clients have, it inspires trust and fosters the desire to belong to the community.
Cutting prices now would be a slap to people who’ve already bought their products. It’s not just about money, it’s also about loyalty. It says, I could have given it to you cheaper, but I didn’t want to. Then the grand dilemma comes, how do you raise your prices after this dip in economy?
Times will get better, and when they do Apple will want to be in a position to continue their innovations having retained their reputation and loyalty clientele, cutting costs may very well put that in jeopardy.
I can’t help but think that the solution so many are crying for offers a short term gain but a very long term loss. It’s a balancing act that so many of us business owners are facing and deliberating.
What are you doing successfully to increase your business?