The Dark Side of Discounts and Smart Alternatives to Them

As we enter the Black Friday/Cyber Monday period, it's time to ask the question:

Should you introduce discounts, promotions, or other price-reducing offers in your business or not?

Why not? - might you ask.

I have the answer.

The dark side of discounts

There is a school of thought that stands behind the “no discounts” policy for a reason.

BTW, I am in that camp.

When you decide to offer discounts, it might create some bump in your cashflow for a short period. Yet, it poses a number of threats to your business.

Let’s look at them:

• When you offer a discount, you diminish the perceived value of your service or product. Basically, you demonstrate that the “true” value of your service or product is lower than you normally ask for it. In other words, the clients might get the impression that they are overpaying outside the promotion period. That’s never a good feeling.
• If discounts are part of your regular promotional activities, your customers will remember that. So, they might decide to wait for another price reduction to enjoy a better deal. Or will look for the opportunity to buy your services/ products at a discounted price even outside the promo. That could damage your revenues outside promo periods and might even force you to keep introducing new promos and discounts to keep the cashflow going.
• With discounts, you might attract the wrong type of clients: the clients who are not motivated enough by the topic or the transformation, but rather by the price point. This could negatively impact clients’ results from your services or products, and increase refunds, and cancellations.

All-in-all, discounting could be damaging to your brand, attract the wrong clients, and negatively impact your revenues outside periods of promotion.

On the contrary, if you decide to NOT offer discounts, like ever, you’ll demonstrate that:

• Your clients should not wait for the discounted price, and buy now when they need it.
• The value of your products and services is fairly reflected in their prices.
• You want to attract clients who make their buying decisions based on many factors, not just on the price.

Finally, if you decide to not offer discounted prices, you’ll stand out on the market! The majority of service providers and businesses do offer discounts. Hence, this is yet another opportunity to be different.

And being different is great!

“When the world zigs, zag”, -Barbara Noakes

Lidia, but it’s scary.

Yes, it is.

The FOMO (fear of missing out) will haunt you to not miss the opportunity of the upcoming Black Friday/Cyber Monday. And I am here to help.

Is there an alternative?

There is.

I told you I am here to help.

Let's look at some smarter ways to take advantage of the upcoming season and yet not damage your brand and your revenues outside the promo period:

• One of my favorite options is to offer bonuses instead of discounts. The trick is - you do not change the price of your regular coaching packages or digital products, but you offer something extra at no or little cost. The bonus could be an extra coaching call, Q&A session, or even some exclusive content, that you don’t normally include in the price.
• Another option could be to introduce a Black Friday product or service, that is only available during this period. That creates a FOMO in your clients if you're okay with that. Because they realize that the next time they'll only be able to buy it in 12 months.
• You could offer a special payment plan that is not available outside Black Friday or any other promo period. Again, that way you don’t deteriorate the value and yet might attract clients who would not buy otherwise.

All of these options will help you to keep the value of your products and services and yet enjoy a cash infusion during promo periods attracting some clients who might have been on the fence.

A word of caution!

It actually applies whether you decide to use the discounts or not to use them at all.

ALWAYS keep the integrity:

• If you promised to never offer discounts, don't do it!

• If you offer a “special bonus”, make sure you don’t offer it outside the promo period.

• If you offer Black Friday ONLY something, keep it that way.
• When you announce the dates, keep your promo to these dates, exactly.

Do what you said you would do to the letter. Or it will damage your brand and your future revenues.

Actions for the week

1. Make the choice: what are you doing this BF/CM season and going forward? It will make your life way easier if you decide once and stick to it. It will also help your potential clients understand your brand better and build trust with them.
2. Whatever your choice is, execute the BF/CM... or not. It is actually totally fine to completely ignore this period and introduce something at any other point: for your birthday or for the Chinese New Year. That actually allows you to be different again, to zag!

With that, I am planning to offer you a Black Friday Something... SOON!

Stay tuned.

And, as always, stay awesome!

Lidia

PS If you found this newsletter useful, please share it with a friend, and ask them to subscribe!

PSS If you need help planning out and executing Black Friday something, you still have time! Book a 90-minute strategy call with me and we'll create a plan and as a Black Friday bonus (wink-wink), I will help you execute it. Want to learn more? Send me a message here or at [email protected]