It has never been more difficult to sustain margins and retain customers than it is now, in late 2021 and will continue to be as we move into 2022.
Increasing prices or adding surcharges is becoming the industry norm. Allowing for, what is hopefully, short term cost increases in supplied materials, resulting from energy cost increases and supply chain disruptions.
In this environment pressure on margins is significant, meaning you are constantly working harder and harder for less return.
This compounded with competitive pressures makes it tempting to think price decreases are the only option that is open to you. Further compounding your margin issues.
Price decreases, though, are not the only approach.
As a Marketing Service Provider, delivering a service that supports your customers brand initiatives and ensuring their marketing campaigns run smoothly is equally as important as price. If not more important when you consider the damage associated with a failing campaign. A smooth automated supply of goods and services is expected: enabling employees to make rapid purchases and accept goods and services quickly and with minimum effort.
Plus, the customer sees knowledge of the supply chain as increasingly important to them and their ability to address sustainability and environmental concerns. If you are able to ensure that supply is constrained to specific suppliers and supply chains then this adds value to your offer.
If you cannot make yourself distinct from your competitors, then you will only be able to adjust prices to win business.