That Little Cut-back Can Damage Your Brand

Companies usually cut-back on major expenditures when they are facing difficult times. I think it’s good, but you must consider the long term effect on your brand.

A company can hire unqualified employees for less, but they may ruin your brand, and you will end up losing the money you want to save.

A company can reduce the quality of their products to break even, but that act may result in loss of customers. Yes, you are making more profit, but your customers are moving over to your competitors in droves.

Maintaining a brand is very expensive. That is why some small business owners don’t want to have a brand image in the first place. They focus on selling generic products that does not have future value.

Increase your price instead of removing the factors that bring customers. To charge more, dont forget to emphasize on the quality of your products and services.

Let’s assume that all the hotels in your location charges $100 a night per room, but because of your brand and the quality of your services, you decided to charge $150 in your hotel instead of stopping those services. Endeavor to let your customers know about it. While advertising, emphasize on those services so that your clients will know why you are charging more.

Don Sexton shared the following experience. “Recently, on a business-class trip to Shanghai, I asked a flight attendant of a major airline for a few more cashews. She said that they had run out because a decision had been made to cut back.

However, what she said next was very telling–she told me, “And you know what? I don’t care. I’m sick of having to try to explain this decision to passengers.”

She was not upset with me–she was upset with the position in which the airline had placed her. More generally, the decision to cut back on cashews (a round-trip business-class to Shanghai at the time cost about $14,000) was part of the brand management–or lack of brand management–by this airline.”

Companies that understand their brand and its importance resist the temptations to make little cuts in cost that may have large impact on value provided their customers.

Don continued, “Our family business was founded by my grandfather. They installed and maintained water systems, including pumps, for customers such as housing developments, golf courses, and summer camps.

It was a small firm–just my grandfather and my father and one assistant. Certainly they could not compete on a low-price basis with large firms. However, they could create a brand that stood for reliability and trust that their customers would value.

My father was always on call for customers who were without water and he always fixed their problem. His customers were loyal because of his reputation–his brand.”

Dear business owner, don’t cut off your nose to spite your face. Don’t cut back on the real services that attract customers. Increase your price and inform customers why it should be so.

We at ( will help you to create a world class brand that will be difficult to beat by your competitors. Just click this link and sign up or send and email to or call 07032681154.

You can also order my books here. Call 07032681154.

Share your thought at the comment section below.

Keep soaring!

Copyright 2019: Reprint, curation, adaptation, or re-posting this article without the consent or approval of is a copyright theft.

One thought on “That Little Cut-back Can Damage Your Brand

Leave a Reply

Do NOT follow this link or you will be banned from the site!