Hi,
I’ve been busy packing boxes. Its time for us to move to an office that is reflective of the environment we’re in at the moment where our team members are working from home 2 days a week. And its not just us. Level 7 in our building has been like a ghost town. Nobody is going to the gym, the lawyers moved out a long time ago and I haven’t seen the accountants for nearly a year!
And that is pretty reflective of what we are seeing all around the world, with businesses giving up office space or reducing the amount of footprint that they need, significantly.
So if you are a landlord and you own some office premises, then what are your options? You can either keep charging the same rent that you’ve always charged (that’s what my landlord has done) or alternatively, you can recognize that demand for office space has reduced and you could reduce your rent and hope to attract some new tenants.
You might not get as much rent as you got before but at least you’ll get something. So those are your 2 options. I think everybody would look at that and say “Well, its really obvious what you do. You reduce your rent and you try and get a tenant”.
So with that in mind, I would like you to reflect on what you do in your own business and how you set prices. Do you use Dynamic Pricing or you’re constantly looking at the market, looking at demand and supply of your product and what your competitors are doing, and adjusting your prices accordingly?
Are you like my landlord where you set and forget prices and where even if demand reduces, you keep your prices at the same level. Because if that’s the case, then just like my landlord, you might find that one day you’re scratching your head, wondering where all your customers have gone.
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