what service or products are most in demand;
Posted: Wed Feb 12, 2025 8:57 am
What to do if you need to reduce prices sharply
So, dumping is a complex and risky strategy that requires careful planning, preparation and understanding of the market. Here is what you should take care of before implementing a dumping strategy.
1) It is worth conducting marketing research. Before reducing prices, it is important to conduct a detailed analysis of the market and competitors. It is important to obtain as much information and data as possible to ensure the feasibility of using different methods and forms of dumping. After all, a business should have an idea of:
which companies are most vulnerable to pricing pressure and what competitors' responses and actions might be;
how sensitive consumers are to price changes.
2) It is necessary to assess your own financial capabilities. Dumping is often colombia phone number list associated with temporary losses, so if you want to lower the price, you should be prepared for a drop in profits.
3) It is worth considering the legal aspects. Different countries have laws that restrict dumping practices. Companies should be aware of this to avoid fines and other consequences. For example, in some countries, dumping differs from reducing the cost of goods and is recognized as unfair competition, which entails serious sanctions.
4) Pay special attention to marketing. A well-designed advertising campaign can hide dumping and make it less obvious, for example, with the help of gifts, discounts, promotions. This will help the business to increase minimum prices to the usual level in the future more easily and without personal consequences and unnecessary costs.
5 ) It is necessary to have an exit plan. The price cannot be reduced constantly. Therefore, the company must determine in advance a strategy for returning to a normal price level. For example, by gradually increasing prices, introducing new products. Remember that dumping affects everyone and can be dangerous for both individual large and small businesses, as well as for the entire market as a whole.
So, dumping is a complex and risky strategy that requires careful planning, preparation and understanding of the market. Here is what you should take care of before implementing a dumping strategy.
1) It is worth conducting marketing research. Before reducing prices, it is important to conduct a detailed analysis of the market and competitors. It is important to obtain as much information and data as possible to ensure the feasibility of using different methods and forms of dumping. After all, a business should have an idea of:
which companies are most vulnerable to pricing pressure and what competitors' responses and actions might be;
how sensitive consumers are to price changes.
2) It is necessary to assess your own financial capabilities. Dumping is often colombia phone number list associated with temporary losses, so if you want to lower the price, you should be prepared for a drop in profits.
3) It is worth considering the legal aspects. Different countries have laws that restrict dumping practices. Companies should be aware of this to avoid fines and other consequences. For example, in some countries, dumping differs from reducing the cost of goods and is recognized as unfair competition, which entails serious sanctions.
4) Pay special attention to marketing. A well-designed advertising campaign can hide dumping and make it less obvious, for example, with the help of gifts, discounts, promotions. This will help the business to increase minimum prices to the usual level in the future more easily and without personal consequences and unnecessary costs.
5 ) It is necessary to have an exit plan. The price cannot be reduced constantly. Therefore, the company must determine in advance a strategy for returning to a normal price level. For example, by gradually increasing prices, introducing new products. Remember that dumping affects everyone and can be dangerous for both individual large and small businesses, as well as for the entire market as a whole.