As a business owner you’ve probably been asked to give a discount.
How did that make you feel?
Your response to that request is critical to the sustainability of your business as well as to your confidence.
Because after all you’re either worth the price you’re asking or you’re not. No discussion. This may sound harsh but if you don’t believe you are worth it, why do you expect your clients to believe it.
Reasons to Stop Discounting
1. It’s no fun
2. It requires a time and energy you can use elsewhere
3. It creates a standard for other clients
4. You’re not getting paid what you’re worth
5. It can lower confidence in your business
Once you’ve made the decision not discount your prices, it will be much easier for you to simply say this in a friendly and relaxed way if you’re asked. You’re mind is already made up so the answer flows naturally.
If a prospective client is not able, or willing, to pay your prices then they probably aren’t a good fit for your business. Moving on from people who are not a match allows you to create space for clients who are willing and able to purchase from your business.
There will always be someone offering something similar to what your business offers for the absolute lowest price. I hope you don’t aim to be that business.
The key is to focus on the value your services and products deliver, not what they cost. Click to Tweet
People who truly understand the benefits they will receive when they buy from your business will accept the prices you have set because they understand the value they are going to get.
If negotiating is the norm in your business, there is still a way to be true to the value your business delivers without discounting. First, get clear about the total value of the offering. Then if you choose to, you can reduce the amount you deliver, along with the price, which means you are not discounting.
Another way to avoid discounting when negotiating is to stick to your original price and add a one-time, additional bonus for new clients.
While you’re thinking about eliminating discounting, please consider increasing your prices. Seriously, when is the last time you raised your prices? And when you did, what was the percentage of increase? If it’s been awhile since you raised your prices, it’s probably time.
It’s natural that your expertise expands and deepens over time so why shouldn’t your pricing reflect that. Whether or not you decide to increase your pricing, at least be willing to stand firm on your current pricing and don’t discount.
Another area related to discounting is doing work for free. Be careful about giving away too mucy of your expertise. Read more about this in my post, Why You Should Stop Giving it Away.
Think about it, you’ll save time and energy if you stick to your pricing. And even better, you will feel confident about the value you deliver to your clients, and of course be more profitable.
So make the decision today that discounting your prices is not part of your business philosophy. Focus on the value your business creates for your clients and watch your business grow.
© Stephanie Ward
WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER, BLOG OR WEBSITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to create meaningful and prosperous businesses. Grab your FREE copy of the special report ‘7 Steps to Attract More Clients in Less Time’ plus business building tips, at: https://www.fireflycoaching.com.
For more on this topic watch my video: 5 Reasons to Stop Discounting.
Share your thoughts on this topic in the comments section below.
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I would add another reason not to discount your prices with any regularity:
you will attract the “garage sale” customers. When you price your items at a higher value, you attract the higher quality buyers; they understand and appreciate quality merchandise and are will to pay for it.
Thank you for your comments Bobbie, great point about how frequent discounting attracts the wrong kind of clients.
I love this article! It gives you pause on what you are doing, how you are doing it, and WHO you are doing it for. Here’s a tweetable! “The key is to focus on the value your services and products deliver, not what they cost.” AMEN!!! I also like the comment here about GARAGE sale customer. I value my time and I would like my clients to as well.
But I am interested to know what you think about these questions. How do you feel about packaging services that market towards different target audiences? Is this just another way to discount?
Yay, so glad to hear Susan!
Thanks for pointing out the Tweetable, just updated the post.
About your question, do you mean offering different prices for different target audiences? If so, what is the reasoning behind that?
Yes I would like to structure pricing towards different clientele. My niche is Expats. But Expats come in all forms. Some come for a job, some come for school, and some come for love. In each case, the monthly income can vary. I thought it may be wise to have valuable services for each situation in life. This would mean a rate change or an offering that is more affordable. What is your take on that?
Thank you in advance!
You could do this, and it does make life more complicated for you.
And, the value you deliver is the same for everyone but some pay more and others less. Your clients that are paying more may not like this.
In my experience, people find the money for things that are important to them.
Another option would be to have one pricing structure and then offer to do 1 or 2 pro bono clients per quarter. It’s also my experience that people value what they pay for and don’t value things that are free so much.
Up to you, let me know what you decide.