Don't Discount Your Services
April 14, 2020
3 min read
Listen to this audio version of the email - Listen Here.
- Discounting proves your prices are BS.
- It trains your customers to only buy during a sale
- Offer limited services instead
I've received a lot of flash sale emails lately - everyone is lowering their prices or discounting their products. Some I've seen as low as 70%! This may seem like tough times now, but what happens when everything resumes back to "normal"?
Discounting Proves to Me That Your Prices are Made Up
Putting your services on sale confirms in the client's mind that your services are fungible. Last month over the phone, you seemed really adamant that your prices are a firm $5,000 and that you can't go any lower. I check your site today and see that you're now saying $2,000? What happened?
This type of back and forth subconsciously proves that your prices are only as high as your confidence and that your business is a grocery bag in the wind.
Your Clients are learning Bad Habits.
Whatever works is my dog's motto. If I can snatch some food off the coffee table, then whatever works. By lowering your prices frantically, you are communicating to your client base that the time to buy is when my prices are at their lowest. "Don't bother signing up at full price, I'll be discounting them next week."
It rewards the cheap, price-shoppers, and creates bitterness among your good clients.
If you're going to lower your price, then lower your offering.
This is not a discount and shouldn't be framed as a discount. This is a fair exchange of value between you and your client. If your client wants to pay 60% of the full price, then create a solution that offers 60% of the value. There's nothing wrong with accommodating your clients. There is value in a long-term client relationship.
The key is that you are completely open and honest about expectations. Many people have caught on to this lately in the form of DIY Kits. You're saying, "We won't build it for you, but here's a way we can help."
Great video from The Futur on Discounting - https://youtu.be/UNrd-XtaC28?t=85