Never discount
John Mason, GAICD
Managing Director, Managing Consultant, Non Executive Director, Author
Let me start with the most important message when it comes to pricing your services: “Never discount. Never discount. One more time, never discount.” The increase in the volume of sales you’d have to generate to cover the loss of margins – even with a 1% discount – is huge.
Any instances where you offer a special price should be part of your strategic sales plan. These may include a product launch or excess stock. Because these are time-dependent. But when it comes to your core product, simply don't do it.?
Read more in my recent blog on ‘Charging what you’re worth’ here: https://www.quality.com.au/media/blog/charging-what-youre-worth
#discounts #sales #businessadvice
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Helping people who do the right thing do it right | Small Business Coach (PCC) and Trainer | Speaker & Facilitator
1 年I'd like to challenge your thinking on this one John ?? Businesses like Kathmandu and Udemy have built their businesses on a strategy of discounting (Kathmandu call it their high low strategy). Kathmandu continues to grow https://www.smartcompany.com.au/business-advice/innovation/how-kathmandu-achieved-its-massive-27-profit-increase-and-what-you-can-learn-2/ I 100% agree never discount without a clear underlying strategy. Decide upfront if your brand will offer sales and discounts, and if so when and how (like you say obsolete products or launches only, or across the board), and most importantly build it into your cost structure. There are great times to discount as part of a well thought out strategy, so no not never, rather selectively and consciously.