This week Pound World went into receivership.
It suffered from decreasing footfall, weaker consumer confidence and an increasingly competitive discount market.
Having them go into receivership might seem surprising. We can almost understand why other high street stores might suffer, but Pound World?
They are cheap they must have a flood of people wanting to buy from them…
Many accounting firms make the same mistake, thinking if they’re the cheapest it will guarantee a flood of clients and keep people coming back.
But people don’t value cheap.
Cheap doesn’t bring loyalty or make you recession proof. Instead, a savvy accounting practice needs to market themselves as John Lewis.
Marketing as John Lewis will attract people who see you as valuable and pay a fair price for great customer service. Clients are loyal, and enjoy the experience of working with you.
An accounting practice that positions itself as John Lewis positions themselves on the high street, will be more recession-proof than a Pound World.
So if you think that providing the cheapest service is the way forward, think again.
It will not serve you in the long term, and you’ll unlikely survive a recession.