Hi, I’m Shauna from Humbird Media. thanks for joining us for today’s blog post.
Our topic for today is “Why discounts may be hurting your business”
So, here we go!
In today’s world where expenses are rising and incomes are remaining stagnant, it’s the latest craze to shop cheap. As a result, many business owners are trying to cash in by offering discounts.
But is that really a good idea? Here are three reasons to reconsider if you’re playing the discount card often.
1) If you get someone to shop with you based on a low price, it may be difficult to keep them long term.
Yes we know you probably think you can hook them with a discount and then deliver so much value that they won’t ever leave. While admirable, that’s not usually the case. We call those customers “Price Customers” “Price customers” usually jump ship as soon as they find someone cheaper.
So though discounts are good for a one-time sale, it won’t secure long-term clients, which are the foundation of business stability.
2) Discounts damage your profit margin.
If any business hopes to be in business long term, they have to make enough to cover their expenses & have at least a little money leftover for other investments. No business owner wants to feel like they’re struggling to break-even every month.
That not only damages business stability but mental stability as well because success seems to always elude them. If that sounds like you, maybe you need to revisit your pricing structure.
Are you giving too many discounts, or worse, are your prices so low that they’re discounts in and of themselves?
You may be running yourself out of business.
3) Constant discounts can indicate that you don’t know your worth.
A one-time discount may be effective when done to attract new customers or reveal a new product line.
However, consistent discounts have a tendency to lower the perception of your business’ quality.
Well if you don’t think your services are worth as much as you originally say, maybe they really aren’t.
Besides, we expect higher quality products and services to cost more anyway. Low costs tend to mean they’re either not that good, or you don’t believe that they are.
And if you don’t believe you’re good, why would your customers?
Still think discounts are a great idea?
Leave a comment below to tell us what you think.
And feel free to share this post on social media with a business owner who’d appreciate it.
I’m Shauna from Humbird Media. Thanks for watching.