FOCUS ON VALUE, NOT PRICE

In uncertain economic times, many businesses are quick to reach for the most overused lever of all: price cuts. It’s the age-old reflex—slash prices to stay competitive, hoping the short-term boost in sales will justify the hit to margins. But here’s the truth: price wars are a race to the bottom. The more you discount, the more you devalue your brand—and worse, you condition your customers to never pay full price again.

Instead, the smartest brands today are flipping the script. They’re not just weathering the storm—they’re using the opportunity to strengthen their position by focusing on value. They’re creating meaningful, long-lasting differentiators that build customer loyalty, sustain margins, and drive long-term growth.

Let’s start by addressing the pricing trap. Unless you’re holding on to inventory that’s perishable, outdated, or out of fashion, cutting prices is often a lazy and risky tactic. Sure, it may clear some stock and pump up this month’s revenue. But next month? You’ll need to discount again—because your customers have been trained to wait.

If you must move inventory, try bundling instead. “Buy one, get one free” or “two for the price of one” still increases perceived value while clearing stock. It feels like a deal to the customer and moves twice the volume—without directly signaling a drop in value like a 50% discount does.

The world has changed. Today’s consumers are financially smarter and digitally empowered. They read reviews, compare options, and make informed choices. What matters to them isn’t necessarily the cheapest option—it’s the best value.

And value is relative. A JD 100 product that feels premium, includes great after-sales service, and comes with a long warranty can be perceived as a better deal than a similar JD 75 item with no support or guarantees. It’s not about the sticker price—it’s about what comes with it.

This is where your brand has the opportunity to shine.

The brands that thrive in down markets are the ones that build trust by offering more:

• Superior after-sale service

• Extended warranties

• Flexible return and exchange policies

• Loyalty programs that actually reward loyalty

Let’s take the automotive industry as a case in point. Consumers still negotiate prices, but what seals the deal is the full ownership experience. Free maintenance for three years? Warranty that covers five years or unlimited kilometers? That’s real value. It reassures the buyer and justifies a higher price tag.

Mobile operators have been using this playbook for years. Offer a premium smartphone at a discount—or for free—if the user commits to a multi-year contract. The device isn’t really free, but the perceived value is high. Customers feel they’re getting a great deal, and the brand gets guaranteed recurring revenue. Everyone wins.

It’s not about reducing what you charge. It’s about increasing what you offer.

Financial institutions have also shifted their approach. For individuals and SMEs, the deciding factor isn’t the decimal point difference in interest rates. It’s whether the bank will help them grow, provide credit without impossible conditions, and make the process easy and human.

Customers are asking:

• Will you finance my car with low upfront costs and flexible terms?

• Will you support my startup without demanding my house as collateral?

The banks that answer “yes” are the ones winning business, loyalty, and referrals.

When times are tough, resist the urge to chase short-term numbers. Instead, take a breath and look at the bigger picture. What can you do to increase value? What experience can you offer that your competitors don’t?

Every economic slowdown is also an opportunity—an opportunity to double down on what makes your brand different, memorable, and trusted.

Focus on value, not price. Your future profitability depends on it.