Why You Shouldn’t Discount Your Prices
How many times have you thought the reason you aren’t increasing your sales is because your prices are too high? Maybe you think that if you discount your products or services you will be able to increase your clientele. Having a discount every now and then can have a positive effect on your bottom line, for example a Black Friday Deal, or Boxing Day Special. However there are negative effects to having discounts, like it projects a lack of confidence, it comes across as the products or services are not up to a higher standard, and overall it hurts your overall profits.
Your Prices Aren’t Too High, You Just Haven’t Found Your Ideal Client
It’s important to get into a mindset of realizing that not everyone you come across will be your ideal client. If someone needs or wants your services but can’t afford them, then they will either return when they can or will find another solution. There is nothing wrong with turning away clients because they are unwilling to pay for your services.
Remember, you KNOW that you are the best solution. You have reviewed your competitors and understand what their offers are, and what you are doing is setting yourself apart from them. When these situations arise, it’s best to stay strong and hold fast on your prices. If you give a discount because someone is unable to pay, then they may return to you simply because they know they will get a cheap deal with high quality work. Don’t set the precedent that you would be willing to do long term work for someone at a lower price than what you need to make.
If you are thinking to yourself, maybe I don’t know who my ideal client should be, check out our Ideal Client Avatar Worksheet. It is important to know who you want to reach so that you can structure your prices according to your needs and it will help you set a decent discount in terms of percentage and length of promotion.
Discounts Mean You Have to Sell More
Let’s say you need to sell a certain number of Product X to be able to break even at the end of the month. If you discount that product by 50%, this means you will need to sell double to make ends meet. Piling that kind of work on yourself doesn’t help when you are already in a place of struggle. Instead of thinking about lowering your prices, why not continue to review where your clients are in their Buyer’s Journey. To read more about the Buyer’s Journey, check out our blog called Your Buyer’s Journey: 5 Simple Steps that Result in Sales.
If you are targeting clients who are not ready to make a purchase, then you are wasting your time and efforts on people who don’t need or want your services. Instead, try to figure out where your clients are so that you can target them with amazing sales copy and ads. Consistently engage with them online and through other channels so that you are always at the top of their mind when they realize they have a problem that you could solve.
Try to set up processes that make your work smarter, not harder.
Finding the right discount strategy for you and your business can be difficult. You want to be seen as trustworthy and confident, but at the same time you need to start selling. We have all been there and you are not alone. Remember, you don’t have to just pick one strategy. Test what works best for you and your business!
A bundle discount works great if you want to sell products or services that go well together. For example, if you are a graphic designer and a social media expert, bundle those services together! This also lets customers try different things at a lower rate as buying them together is cheaper than buying them separately. To check out some of Women in Business Club’s Bundles, visit our Official Online Shop!
Buy one get one free discounts are great if you want to attract a client to a specific item or simply want to attract more clients in general. People love the word “Free” and buy advertising a BOGO promotion, you are sure to get more people interested in your business. Remember that you can always have the “Buy One” item your money maker and the “Get One Free” can be an item of lesser value that is less of a cost for you.
Free Shipping might not seem like a discount, but you as a business are taking the cost of shipping their items. One way to make sure that you are still making a profit from a free shipping discount is to set the free shipping at a high profit. For example, customers will receive free shipping after they spend more than $50.
One great thing about having your own business is that you get to decide when your seasons are. For example, if you run a coffee shop, you can have a huge sales discount on National Coffee Day. Maybe your service is about self care so you plan a discount on Blue Monday, a day in January which has been named the most depressing day of the year.
Your Sales Don’t Define You
The key takeaway is that your sales discounts don’t define you or your business. Try to find the balance between what works, what looks best for your brand, and what is truly making a difference. Stay strong in your self worth and remember that with great customer service, high quality of products and services, you are bound to have clients begging for your help!
J. Rachel West
Marketing Executive | Women Thrive Media
Rachel West is a marketing & branding devotee who loves empowering women in business. She is a “she-boss” running her own marketing agency, JRW Consulting LLC. When she's not at her desk you can find her traveling the world.