Discounts are stupid!
Discounting may seem like a sure-fire way to turn heads and generate a crazy influx of leads into your business, but we strongly urge you to think again!
Discounting is BAD for your business.
And here’s 4 critical reasons why…
Firstly, when you discount, it gives the wrong impression.
Most trade business owners want to be high end, work with the best customers and be known as the premium brand…
But getting people in the door with discounts gives the wrong impression and hurts your positioning.
They give the impression that you’re cheap and not worth the high value that you’re bringing to them.
Secondly, discounts are also bad from a sales perspective because they make you price focused.
People by for their reasons not yours.
Without communicating value, you’re just making yourself another number with no differentiating factor.
Value your service and know your worth.
Connect with their motives and reasons instead of just making it all about price.
Thirdly, when you discount, you also attract more budget buyers!
Next thing you know you’ll have a whole list of customers that are cheap, fussy and picky because they didn’t have the money to begin with.
And lastly, discounting also hurts your profit!
When you discount, the job still costs you the same amount of money to produce and deliver (unless you start to make shortcuts or use poor quality material which is ALL BAD!).
This leaves you working harder for less profit!
That’s less money on every job to recover your overheads, hit your breakeven point, and hopefully make a profit!
And what happens when you get a call back, or they pay slow or not at all…?
Disclaimer: There are some contractors, that are really good at their numbers, really good with their costs, forecasting, managing cash flow and that have capital and so on, where they have been able to use discounting in an effective way…
But 99% of people are not in a position to discount their work and it will hurt them and their business.
Instead of discounting:
- Build a strong brand
- Don’t be lazy with marketing
- Learn how to sell based around motive
- Learn how to handle price objections
- Communicate value
- Learn how to deliver at your numbers
- Think profit over revenue
- Qualify and work with ONLY ideal clients
When you do all that, you’ll get far better results than discounting ever will.
NEVER lower your income for people who won’t raise their budget!
If you're looking for assistance with anything to do with pricing and winning work, click here to learn more about how our team can help!