Credit Policy for businesses and how to extend credit and manage credit risk

As times get tougher and tougher we see the affects approaching and coming closer and closer to our world.  While the economy is down, new business seems like something of the past, but don't get discouraged and start making rash decisions such as cutting prices.

When times are slow our first instinct can be to cut prices because we think that will help us to make more sales that might make up for the discount.  Though this might work, it would end up being a small amount of money and would discount your credibility or reputation.  Something I have learned in my years of being in the business wolrd, is never discount your service or products.  Something I have found myself tempted to do and I remained steadfast and strong and have refused to do it. I believe there is something better you can do.

Rather than cut your prices and admit defeat, offer your cutsomers an award for sticking with you during tough times.  This can be in the form of a coupon or a rewards program.  By offering a buy one get one deal or buy one get something at 50% off, you build value for your company as you make more sales and more money.  Offering deals like these increases your sales, where someone might have only purchased one item, with a deal like this it seems almost foolish to them not to take advantage of the deal and therefore purchase more from you.