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Marketing Insights for Entrepreneurs

Are You Sure It’s a Good Idea to Offer Discounts and Promos?

A while ago, we happened upon a book called Worth Every Penny by Sarah Petty and Erin Verbeck, which says you shouldn’t discount your products and services.

The main message of the book is simple: by discounting your offering, you’re taking away from the overall value of what you do.

The concept was intriguing and got us thinking about how discounting can sometimes be disruptive. It can distract from your branding and may also mean make you seem a little desperate for sales.

But saying no to discounting isn’t easy. How do you encourage customers and clients to make purchases without coupon and incentives? How do you reward your loyal buyers if you can’t offer those insider discounts?

Here’s what we’ve found: It’s possible to look at discounting a little differently. Yes–there’s definitely a place and a time for rewarding repeat customers, but there are options besides marking down your retail price.

1. Think of Creative Ways to Reward

Sometimes customers just want to feel special—and that doesn’t always mean they need to save tons of cash. Maybe you can provide them with a special experience or festive packaging that comes with a purchase. A surprise “extra” included with the order, handwritten notes, and other small gifts make working with you worthwhile. Be creative.

2. Get Personal

Treat your customers like human beings, not numbers in your database. Yes, it takes more time to add a personal touch to each transaction, but the time invested in a handwritten note goes a long, long way. Customers will be willing to pay more for a product that goes comes from a company that continuously goes above and beyond.

3. Don’t Be Afraid to be High-End

You’re worth what you charge, right? Every market has a boutique or expensive provider—why can’t that be you? If your product or service is vetted for its high quality, don’t be afraid to charge more than the others who are discounting. Proudly offer a luxury or premium service.

4. Let Your Testimonials Talk

Shine a light on your clients who are ready and willing to sing your praises. By showcasing your positive reviews, people will feel less risk when working with you. The social proof of others will justify your rates and curb the demand for discounts.

5. Wow Your Customers

If you’re going to charge top dollar, make sure the client or consumer has a fantastic experience both before and after their sale. Go the extra mile to make sure presentation is at its best and the experience is one that makes a splash with the buyer. Make them remember you!

There’s no reason you should feel obligated to offer discounts if your work is worth what you’re charging. Delight your customers in other ways that don’t subtract from the value of your offering. Quality and memorable experiences are what make consumers forget about even needing a coupon code before they take that leap and make the purchase.

Your Turn: Do you agree that discounts are disruptive? Has offering discounts worked for you? Please share in the comments below.

 

  • Emma

    hi

    • http://www.emmasiemasko.com/ Emma Siemasko

      hi :)