Everyone loves a discount, right?
Of course; we all do. There is something deep within us to get things for cheaper than what they appear. Whether that be at the carboot on a fresh and crisp Sunday morning, or perhaps at the supermarket when we see those different coloured price labels. It triggers something within us that makes us want to buy. Whether that be because we love a bargain, or a sense of rebellion in beating the system, the fact remains that we love a bargain.
However, the same can be said for your customer. Your customer loves a discount, don’t they? How many times have you heard the term, ‘is that your best price?’, or perhaps, ‘can you do it at mates rates?’ Or even, ‘can you do it a bit cheaper and I will give you some exposure?’
At the end of the day, and even at the start of the day, it is entirely up to you if you choose to discount what you are offering. Perhaps you have a very big profit margin and the discount will not make a massive impact. Or perhaps you are happy to give out a discount in return for reviews and testimonials, or you are building your brand the fact of the matter is, you need the exposure! All of these points are valid, and are fine.
But what if you are sick of having to compete with competitors over price? What happens when you overly discount your goods so much that you lose sight over what they truly are?
Well, this brings me to the point of this article;
You see, once you start to discount a product or a service you devalue the quality of your offering. Put it this way; you have priced your product or service according to multiple factors, one of which will be the quality in which it offers the market place and for the return of investment the buyer will receive. Once you start to discount this, you are discounting the quality of the product.
Do you ever see something available at a trial price of £30 for a month, but then to rise after the second month? My first question in this scenario is; “Well how come they could make money on the first month, and yet still want to make more money the second month? What is different??”
Here is what you want to start doing instead of discounting; add value.
By adding value onto your product or service, you take away the need to lower the price and add items on that only make the offering too good to be true. Each industry will have it’s own ideas on what to add on to increase the value of a package but here are some examples;
– Hedge trimming. Added value = lawn edging.
– Hair cut. Added value = free wash.
– Car service. Added value = free MOT.
– House clean. Added Value = free cleaning products.
The lists can go on.
However, the majority of the time, the best way to beat a cheaper service that you are competing with, or to avoid discounting, the ability to add value can really make you stand out from the crowd and give you a chance to keep the value of your product or service whilst at the same time allowing your customer the chance to try one of your other services included in the package!
So, go on! Whenever someone asks for a discount, ask them what they would like added on to the sale instead. You will be surprised at how quickly the word discount vanishes from the conversation.
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We cater for any size business, and what makes us stand out is that we truly care. Our services can be catered for your business and our sales professionals will work tirelessly to ensure your sales targets are met. Be sure to visit our website for more details on how our sales solutions can help your business.