YOU ARE CUT­TING PRICE IN OR­DER TO MAIN­TAIN CASH FLOW

Finweek English Edition - - BUSINESS -

This is a com­mon prob­lem in a tough econ­omy, but it’s a danger­ous strat­egy as An­dre found in his con­struc­tion busi­ness. He quotes low, to keep the cash com­ing into the busi­ness. But to cover the cost of do­ing the job (buy­ing ma­te­ri­als, pay­ing his work­ers and so on), he needs to sign up an­other cus­tomer quickly. So he dis­counts again, to keep the money f low­ing in. Rather, build deeper re­la­tion­ships with your clients. Trust is an im­por­tant fac­tor in a client’s buy­ing process and cus­tomers will pay a small pre­mium for the com­fort of work­ing with some­one they trust. over that pe­riod, 40m cell­phones came onto the mar­ket, the ma­jor­ity of them into the hands of con­sumers who never be­fore had a phys­i­cal ad­dress. Where was the in­no­va­tion and adop­tion of new tech­nol­ogy to re­place pa­per-based pro­mo­tions? To­day, we are fight­ing an up­hill bat­tle to turn his busi­ness around.

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