The discount that bit me

Wow, I gave the guy a discount, and it cost me his business.

Seriously, who gets upset with a discount? I’ve never heard of that before. Well, I have now!

I have often let fear dictate my pricing strategy. Afraid to lose a potential client, I would sell myself short and beat myself up for it later.?But I learned even winning a client with a discount has negative consequences that can affect you and your business.?

So, here's what happened.

I was on a discovery call with a client, and everything was going fine. I was confident the deal was done. Well, it was fine until he asked what my rate was. Once I told him my fee, his demeanor changed faster than a tropical climate. This dude turned from upbeat to skeptical (and even suspicious) on the spot.

If you haven’t experienced a tropical climate, let me tell you it can change in an instant. It can be sunny one minute, then dark clouds, and rain the next.?

He asked me why I was charging half of what the competition was charging. Then he kept drilling me with more questions. It was starting to feel more like an interrogation, and it caught me off guard.?I explained I am testing a new program, hence the lower rate. That reply fell on deaf ears.

The conversation progressed in the direction opposite of North, so we finished the call and I thanked him for his time.

I was a bit dumbfounded after the call. I can appreciate the questions, but not to the point of getting raked over the coals.?

I know this was an unusual case. I’ll bet if I offer 10 more people the same rate for the same service, I will get a positive response. Admittedly, whenever I see something of supposed good value for a low price, I am suspicious, so I get it to some degree.?

Maybe that odd interaction was necessary since it made me rethink my approach to offering discounts. Deep down, I always knew that I needed to be better about sticking to my pricing.??

There are many arguments against offering discounts, which I will cover in another article, but for now, I will touch on the self-inflicted results I experienced.

If you’re like me, you’re good at beating yourself up over self-inflicted mistakes. (What’s worse is I’m a Virgo, and to say Virgos are self-critical is like saying bears sh*t in the woods). Self-inflicted mistakes are the worst because you did it to yourself. You can’t point the finger anywhere.?

I can’t tell you how many times I have offered a discount only to beat myself up over it later. Then what happens? You project that negativity on to client you gave the discount to.? Maybe not outwardly to where they notice, but carrying that crap around inside doesn’t help your relationship with that person, now does it??

Be selective about what baggage you carry. People can pick up on things.??

There are times when a discount may be necessary, but don’t offer discounts as a knee-jerk reaction out of fear of losing a potential client.?

In closing, here are some tips that helped me.?

*Make sure you are targeting the right audience. I wasn’t, so it’s no wonder I was always haggling on price.?

*Embrace losing. Losing clients can be a good thing if they aren’t the right fit for your business.

*Your fear of losing clients is mostly in your head, much like the child afraid of monsters under the bed. If you present yourself and offer well, people will pay your price.

Trust me. You may even surprise yourself.

Curt Sassak