Key credit questions you should ask
Sales, marketing and brand management decisions can be as difficult as they are important. Below are some of the issues that may need to be considered on a regular basis.
- How elastic are product prices? Could prices be increased without reducing revenue?
- When is the next price rise planned? Could it happen sooner?
- Are forces driving down prices in your market? What are they and how can you counter them?
- Who fixes prices in your organisation? How do they do it and could the process be improved?
- Are discounts targeted at the right sectors, or are they needlessly eroding profitability?
- Could pricing be used more aggressively?
- What are the barriers to entry in your market? How much of a barrier are they? Could you make it even harder for competitors to enter the market?
- When is the best time to enter or leave the market? Can action be taken to discourage and reduce the effectiveness of competitors entering?
- If you are planning to enter a new market, what makes your offer distinctive and likely to succeed?
- Are other firms entering the market? If not, why?