No business – big or small – is immune to customers or prospective clients’ requests to discount prices. Especially in a down economy, consumers are always on the lookout for a bargain.
But, if you bend on price to make a sale or to attract a new customer you are actually working against yourself.
How?
- Work smarter, not harder
Discounts can wreak havoc on your business.
Since you will be earning less money you will need to work even harder to make the same amount of money. And, if you discount your services for one customer, how can you tell another customer no? Where do you ultimately draw the line?
By declining discounts you are actually working smarter instead of working harder to compensate for lost earnings. A good customer will appreciate what you have to offer and want to see you succeed.
- Sell value, not price
Before selling a customer on what your company has to offer, you must first be a believer yourself in the value of what you can provide. When a customer balks at the price you set, explain the value of your services, what sets you apart from the competition and why they would be better off with your services. You will likely never “win” by offering the cheapest price.
- Know when to say “no”
If your prospective customer is set on paying less regardless of what you say it might be best to cut your losses. In business, we must be profitable to succeed. When a customer asks you to accept less money than you need to make a living, they are, in essence, a loss.
Think of it like this: Someone wouldn’t walk into a big box department store and ask the sales associate to sell a shirt for less than is printed on the sales tag. If it costs more than a shopper wants to spend, the customer chooses another item or does not buy anything.
The idea should be the same – but is not always the case – for service providers and small businesses.
I have heard some outrageous reasons for why clients needed me to discount services. I would love to hear your stories related to the discount question and how you have handled it with your business. Please share your comments below.
