Clever Story About Responding to a Price Cutting Competitor.

I saw this today as part of a NYT article. It struck me as a cute story and maybe it would help some of us persuade a client or even remind ourselves that we don't always have to cut costs as a response to competitors who drop prices. Anyway, food for thought......

Quote:

The store is about a neighborhood barber whose livelihood is threatened by the arrival of a chain offering $5 haircuts.

The barber “hires a marketing consultant,” he added, “who hangs a banner above the shop, ‘We fix $5 haircuts.’ ”

The moral is “don’t go down that road of discounting yourself into being considered a commodity. It’s damaging to your brand to train consumers to expect a sale every day.”