The end of discounting
Jon Schallert has helped thousands of businesses and scores of small towns bootstrap their way to success. His theme is creating a business destination - making your business an experience that is so attractive that customers go out of their way to find you. He advises small businesses in particular to avoid the discounting trap.
Here are some of Jon's takeaways:
- Every customer wants good value these days, but not all customers need a discount to purchase.
- Discount marketing attracts the least loyal consumers who are most likely to desert your business when another business discounts more.
- These same discount-oriented customers generally spend less money and demand more attention than more profitable customers.
- Bottom-line reality: The more you discount, the more bottom-feeders you’re going to attract.
Assistant General Manager| Coach | Mentor | Leader | Podcast Co-Host | Coffee Connoisseur
7 年First off, great post Bruce. Second, I think one key principal I see on the takeaways is the definition of value. “the regard that something is held to deserve; the importance, worth, or usefulness of something.” Value doesn't automatically equate to KMart or WalMart specials. Value has to do with what is exchanged in the transaction. If support, insight, and above all great service are tied to something, it can be priced at or above competition because the value received is far greater than the cost from the price paid. Take for example ChickFilA, whose sandwiches and fries and shakes are priced at or higher than many of its competitors, however the care and culture of service so pervades every aspect of the people in that company that people go for great service and walk away with great food. Or maybe some could say it so. Thoughts?
Academic Dean @ Front Range Community College | Doctor of Management | Organizational Leadership & Change | Transforming Workforce Readiness | Kansas City Chiefs Fan
7 年Jon Schallert has great perspective. Not all businesses have "low price" as a value proposition.