Great article from one of my feeds that's more relevant today than ever. With basically the whole world in financial panic mode & small businesses looking to cut corners wherever possible, there's a temptation as suppliers to lower prices in order to guarantee the business.

This can end-up in a vicious cycle though & so what could you be doing to add even more value instead of just cutting margins? This is particularly important for SBSCs given that SBS 2008 is just around the corner & the fact that SBS 2003 will still be available for some time.

Quick excerpt:

For most small business owners, the first place to look when facing tougher competitive challenges is value instead of price. In other words, look at your products and services and ask yourself how you can add value to the offerings before you simply cut the price to generate business. The problem with discounts is they become permanent and have the net effect of devaluing what you do. By looking for ways to add value, you will likely stumble upon enhancements that become true points of differentiation and drive the real and perceived value of what you offer up - making your business both unique and more profitable.

Full article by John Jantsch here.