Some of the best lessons to learn from are from unrelated businesses and industries.
While I never think price slashing is the real answer to cash flow issues, it can bring in some serious numbers.
The car industry is in serious turmoil right now.
Which meant they did slash prices.
What did it do to sales numbers?
The results are in for March, 2010.
US highlights:
- Industry wide sales have run at the fastest pace last month since 2009′s cash-for-clunkers rebates.
- General Motors Co. posted a 21 percent increase in March U.S. sales.
- American Honda was up 22 percent, in line with predictions.
- Subaru, the only automaker to post U.S. sales gains in each of the past two years, rose 46 percent.
- Toyota Motor Corp. and Ford Motor Co. rose more than 40 percent as higher incentives industry wide helped lure buyers to showrooms.
Canadian highlights:
- Ford Motor Co. of Canada led all auto makers in the country in sales last month with a 29-per-cent increase.
- Subaru Canada Inc. said March was a record-setting month with a 33% increase over March 2009.
- Toyota Canada Inc. reported a 24% jump in year-over-year sales in March.
- Hyundai Auto Canada Corp. reported a 25% spike in sales.
- Kia Canada furthered its year-over-year sales by nearly 25%.
So there are definitely some big increases in sales numbers.
Profits of course must decrease with a revenue per purchase decline.
It will be interesting to see what happens in the long term with their new pricing strategies.
It could save them…
…or put the final stake in their coffins.
Wait and see.
Nothing wrong with doing a one-off price slash sale…but never make it part of your routine.
Once people notice you are a price slasher and always have a sale on… they will never pay full price again.
Something to watch for.
Recent Comments