Option 1: Restructure or recalibrate the portfolio of products or services

There is no doubt that every company deals with difficulties from time to time. It doesn’t matter the years of experience or its competitive power on the market. However, sometimes unexpected situations occur that disrupt the well-being of a company, for example, inflation. There are several techniques you can use to deal with sudden changes without affecting your customers’ initiative to keep purchasing:

• Grouping products (sell them in bundles)
• Ungroup products (sell them separately)

These two ways are the most effective methods to avoid affecting your profit margins.

For this method to work, you need to establish a price that stays in the margins of what the client is willing to pay, which satisfies them. If the price is below what the customer is willing to pay, he considers it a bargain, thus achieving the sale. It is known as consumer surplus economics.

 Another way to restructure the portfolio is to look for alternatives to current products, either based on low prices to compete with the ones you already have or look for items or offer services with higher prices. The customer will see your current product line much more affordable by introducing higher prices making the sale.

An important fact is that customers pay attention to price changes and quantities and qualities. So, keep this in mind when making changes.

 In those businesses where the price is the main character, the client will be more sensitive to changes. On the contrary, if the company is based on quantity offers, the client will be less susceptible to prices than quantities. Using ingenuity with this method is entirely at the company’s discretion and the type of client it serves.