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Pricing does not create value per se, but it can greatly influence the perception of it. Price gives customers clues as to who you are, what you do, who you serve, and ultimately how you perceive yourself. Mercedes-Benz does not advertise by claiming they have the lowest- and best-priced cars. Mercedes sells luxury and status, and its customers are willing to pay the higher prices. Beauty is in the eye of the beholder, and so is value.
So, how do you avoid being the low-cost provider always competing based on price?
Finally: You don’t want to win the customer award for cutting your prices every year. You’ll eventually put yourself out of business!
Allen & Company, PC - a CPA firm serving Kennesaw, Marietta, Acworth, Woodstock and north Atlanta. Providing accounting, financial statement audit, taxation, and advisory services for individuals and businesses. Extensive experience working with franchises.