Over the next 2 months, one of America’s legacy businesses called Payless Stores will wind down under America’s liquidation laws. The name of the company is instructive “Pay-Less”.
In almost 7 decades of operations (Payless opened in 1956), the company opened over 3,600 retail outlets in over 40 countries including US and Canada and served hundreds of millions of customers.
The problem of Payless, however started in 2017 when it first filed for partial liquidation.
Why precisely is Payless closing?
Looking through the entire website of Payless what do you see- an unimaginative and wholesome promise” to always deliver cheap”. Their online website description says:
“…Low price shoes for Women, Men, and Kids, including, boots, sandals, dress and athletic shoes. Free Shipping +$25, Free Returns…”
They made a very strong promise on providing low price shoes for all but not a single promise on the quality of their products or the excellence of their service. It tells you the very strategic focus of that business.
Payless is another moving example of how you should never ever run a business.
Being the “lowest price” is an uphill battle. If there is one fight you should never do it is the price war. Those who win it suffer heavy “casualties”. You can’t do the price war and not lose margin. If you would why then are you in business?
Whenever you ever get under the pressure to reduce price please remember “More value almost always matter more to a QUALIFIED buyer than less price”
Before you ever drop your price here’s a question I love you to ask “When I drop my price 10%, does it make my product more valuable or just less expensive?”
As you may be aware, Bunmi Jembola has built a strong career in sales over the last 15 years selling hundreds of dollar deals for Nigeria’s biggest brands across 4 different industries. If there is anyone who understands how to sell to the big corporates he sure does.
He will be joined by 24 other senior and highly-accomplished sales leads from across Africa including South Africa and Kenya to teach the science and art of revenue generation- the tactics, strategies, technology and revenue leadership at the Sales Leadership Conference 2019.
DATE: April 3 – 4, 2019
VENUE: Muson Center, 8/9 Marina Road Onikan, Lagos
Visit https://events.salesruby.com/ to register