Discount, does it work in your favour?
I’m sure you’d agree that there is a great deal of competition in business, as you strive to achieve a consistent level of sales? You know that sales are required for sustained business growth and development, and that without sales your business may fail.
Does this mean that the way to influence a sale (or just to make a sale) is to discount your offer to prospective clients, especially when you run a service-based business?
When a prospective customer is interested in a programme that you offer and he/she asks for a discount, do you feel the need to reduce your price to secure a definite investment? What do your think this says to your customer? Are you encouraging them to ask, “Is this programme of value to me and my business?”
Here are THREE reasons why you should not discount your services:
- Devalues Your Service. Your discount says, “this programme is not worthy of my commitment”. Compared to a product-based business that can mass produce and offer discounted prices, a service-based business owner cannot discount his/her time. The valuable asset of time is priceless. Offer a discount for your time and you devalue your service.
- Creates a Negative Impact on You. When you lower your price, you lower your own standard. When you lower your standard you in effect say to yourself, “My programme is OK and is only worth X amount”. Place negative thoughts in your head and your results will reflect your lack of self worth, lack of confidence and your limiting beliefs.
- Lowers your Income. Limiting your belief by discounting your service will dramatically influence the size of your income. An offer of reduced cost can only stagnate your business growth. This will move you further away from achieving your financial goals.
Here’s what you can do to encourage your customer to ‘buy into’ your service:
- Add Value. Package together what you offer rather than simply offering services by the hour. A package demonstrates support and added value plus credibility for you and your service.
- Include Extras. Make your customer feel like an exclusive member by offering irresistible bonuses. What else can you include to go the extra mile?
- Know your Purpose. Demonstrate clarity and identity of your service to enable confidence of your proposition to your target audience.