Would You Pay $50 for a Stock Valued at $25?

In today's business climate, business owners and anyone that has a product to sell needs to make sure the market is ready and willing to purchase what you are selling for the price you are selling it for.

Let me give you an example.

Let's say last year you purchased a share of stock for $50 and, at the time, that was the prevailing price for the stock. Well, one year later you want to sell the stock and  it is worth $25. Would you expect someone to realistically buy your stock back from you for $50? Of course not, why would they overpay for your stock when they can go somewhere else and get the same thing for $25?

Or let's use this example. You go to a store and look at a computer and for $750 you can get the monitor, hard drive, keyboard and mouse. Pretty good deal you say to yourself but, being the educated shopper you are, you decide to go to another store to comparison shop and it is a good thing you did. The next store is offering the same computer with the same exact equipment for $750, but they also have included a set of speakers, internet camera and a microphone at no additional cost.

If those free items were not really that important to you, what would you expect the first store to do? Of course, you would want them to reduce the price of their product right?

We are dealing with the same thing in the real estate industry right now. Home values are down and sellers need to make sure they price their product competitively to beat the competition. Buyers have a lot of choices and, if they see the same type home at a discounted price, they will not pay more for a home when they can go somewhere else and get it at a discount. If they do decide they want your home, they will look at what they can buy that is similar and want you to discount the price.

So, let me ask you as a business owner: Are you selling your product or service to your customers at a price that will earn their business or are you losing potential customers because of price? It's a hard call to make but to survive you might want to look at what you are selling to make sure the price is right.