Like it or not, price cutting is the crack cocaine of business. Youโre both the junkie and the dealer. Like any drug, the insanely addictive short-term high will momentarily camouflage the long-term effects of underselling your product. And you will all too quickly get hooked. Your price-cutting habit will rapidly spiral out of control. Cut costs, make it cheaper, cut costs, make it cheaper. Youโll be trying to save money on production. Reducing the quality of your product, cutting corners, until youโll eventually be cutting your own businessโs throat. And then the slow truth of this self-induced vicious cycle dawns: you canโt make it any cheaper. Youโve slashed it until you have no margin left. And youโve dumbed down your mission to boot. Game over, dude, all because you became a discount hobo.
Excerpt from: Business for Punks: Break All the Rules โ the BrewDog Way by James Watt