Are You Offering Too Many Discounts?
A misconception amongst some entrepreneurs is that they have to constantly be offering discounts to drive sales. The problem is offering too many discounts can actually hurt your business. Let’s take a closer look at why you shouldn’t keep lowering your prices:
If you constantly offer discounts people will never want to pay full price. Every time you run a special you might see a jump in your sales numbers initially, but then when you raise the price back up suddenly sales come to a grinding halt. Why? Because you have trained your customers to never pay full price and because of this, they won’t.
Offering discounts portrays your business as cheap. The very definition of the word discount is to lessen the value of. Do you really want your brand to be seen in the eyes of the public as less of a value?
Finally, discounting means you will never be making the actual amount of money you were hoping to make unless you mark up your prices significantly and then take down the price from there. However, doing this makes you look scammy and sleazy as a sales person.
What should you do instead of discounting when trying to get your sales numbers up? Add value and charge the full price. What does that mean exactly? Let’s say you’re an author and you have self published a nutrition book that required purchasing several copies in advance. Now you have to sell that number of copies to make a profit. Instead of offering a discount to move the goods, why not charge the full price and when sales taper off give an additional item to encourage additional sales? For example, buy my nutrition guide and get a sample grocery list for all of the recipes from the book completely free! Now, you have sold the book for the full purchase price and still sold all the books because you added value instead of discounting!
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