Don’t Dis(count) Your Own Business!
Today’s blog is all about discounts. Lots of companies use discounts. They’re everywhere! Heck, I don’t think some companies have ever sold anything full price.
When it comes to discounts, our advice would be don’t offer them. Especially to carrots!
Allow us to explain…
Some people, they’ll dangle like a carrot in front of you with the whole, “if you do me a deal on this, there could be the possibility of working together more in the future”, or “If you give me a discount, I’ll refer lots of business your way” blah, blah, blah…
Sure, that sounds great, but you need to know what you can get now. It’s lovely that you might get more business. It’s lovely that you could be recommended to others. Want to know what’s not lovely? Applying said discount and getting no return. Just a customer who will never pay what you’re worth.
We’re not total cynics though, don’t worry. There are some occasions when discounts can be a good thing.
Yeah but no but
Generally speaking, a discount is simply taking money off your bottom line. So, if you are going to offer a discount, maybe look at it more from a special offer point of view. Can you give added value to something that’s already making you money? Like a discount but not really.
For example, if they buy X, you will give them Y free. If they buy two of your widgets, you will give them a third free. That kind of stuff, rather than doing a straight 20% off.
Trap the commitaphobe
Discount for more commitment there and then.
Maybe you’re a service-led business such as ourselves, and your minimum term is three months but they’re pushing for a discount. Why not offer a monthly discount if they commit to six months or maybe even 12 months, rather than your three?
In the words of Britney, “Gimme More”
If you sell products, discount for more orders.
If someone wants to buy one of your widgets and they say, “Price is a bit steep”. Sorry, the price is the price. However, if they’re going to bulk order by buying five 10, 15, 20 products from you, then maybe offer a discount in that situation.
Eat, drink, refer, repeat
Finally, discount for loyalty and referrals that are given there and then.
If one of your clients gives you a referral, maybe you can offer that referred business a discount and you can give some kind of thank you gift to the client who referred you as well.
If people refer business to Codebreak, we’ll send them a case of beer, a nice bottle of champagne, or a nice bottle of wine, alongside doing a deal for that referred new client.
So it’s win-win. No mights, no maybes, no coulds, no carrots.
Be very clear about who you will discount for and why. Know your worth and don’t eat your vegetables…
As ever, if you’d like support on how to get the most out of your business, book onto a Discovery Call with us today.
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