What should the CEO of an SME company know about value proposition to make it profitable?
A sales representative comes to his boss and asks for his approval to lower the price in the offer, because sales slowed down and market is “demanding”. This situation is known to many CEOs in the SME sector, whether they are a production company, a service company or a distributor. However a slow down of our sales may happen for many different reasons and does not necessarily mean that our prices are too high.
If the company doesn’t verify the actual reasons for declining sales and immediately cuts its’ prices, it may unnecessarily lower the profits.