It’s been an exciting few weeks here at Taylory Towers.
The 2nd September finally saw the return of my face to face planning days and I LOVED it! 14 people all spent the day focusing on their business plans.
Sharing challenges, ideas and encouragement. Not a mask in sight, just bucketloads of enthusiasm for what’s happening next in their businesses.
Once I’d remembered what on earth to do on those days (which was challenging I can tell you!) and got over the technical gremlins in the morning (who knew my speaker needs charging, what a duffer!) it all ran really smoothly.
This Thursday also sees the first face to face meeting of my regular networking group in sunny Northwich. I’ll finally get to meet with people who I’ve only seen on zoom for the last 11 months. Wonder if everyone will turn up in smart tops and pyjama bottoms??
It’s definitely starting to feel like things are back on an even keen and it feels bloody brilliant doesn’t it?
My hint of giddiness at the moment might also have something to do with a week away in Tenerife last week. Our first sunshine holiday for almost two years and I can’t tell you how much I needed that break.
I had a tiny little nosy at social media while I was away but made a deliberate decision to switch off as much as possible and properly recharge the batteries.
And fancy that – the world didn’t end because I wasn’t on LinkedIn for a week. Who’d of thunk it?
My honest advice to you is to recognise how important it is to take regular time out of your business. The recharge and the increased focus will pay you back 36 times over (at least), and your business will really thank you for it.
But anyway, enough about me … you want something useful for you, not just all my gossip and pontifications!
So this week I wanted to talk to you about one of my favourite subjects in the world – the reasons that discounting your prices is soooooo bad for your business.
I know that the last 18 months has been slightly bonkers, and there’s been more pressure than normal to drop prices, to compromise, to help out others who are struggling. But the simple truth of it is that discounting damages your business. No matter how lovely your motives for doing it.
Still need convincing?
Then let me give you my top 6 reasons …
1. Because it makes you look like a liar!
Ouch! How rude. But it’s true. Because rather than pleasing your customer it often leaves them with more questions.
Questions like …
“If you were honest you’d have given me the right price to start with wouldn’t you?”
“Whereas now I’m wondering whether I should have asked for a bigger reduction?”
“Have I still paid too much?“
“Did the next person pay less?”
“Why weren’t you HONEST with me?? “
- Because it often wipes out way more profit than you realise, and leaves you broke.
Picture this … you sell at £100 normally. All of your business costs mean that every sale costs you £60 ( think marketing fees, office costs, insurances, your team – they all cost money!)
So a grumpy customer asks for a discount & you offer 10%. To the customer that’s OK but nothing to write home about.
Whereas you’ve just given away 25% of your profit! Ouch!!
- Because it attracts customers who care about price over loyalty
Loyal customers will help you grow. Penny pinchers won’t!
They’ll be off the minute somebody else offers it 46p cheaper and you’ll be scrabbling around for your next customer.
- It stifles your growth.
You know that cash you want so you can invest in a VA or hire a great coach (that’s smart thinking right there😉 ) … well giving away your profit through discounts will kaibosh all of that!
- It might actually lose you business.
Discounts make you look cheap, possibly ‘too cheap to be any good’.
Go with the Stella Artois route and be reassuringly expensive instead. Expensive implies valuable. It’s not logical.
But it is true!
- You risk alienating your best, most loyal customers!
Imagine one of your favourite customers seeing you offering their service at less that they regularly pay?
How peed off are they going to feel?
So, there you have it … 6 reasons why discounting can damage your business.
Hopefully you’re already with me on this and didn’t need any persuading, but in case you did I hope this has given you a new resolve to stick to your guns and stop underselling yourself!
I’d love to hear back from you with anything here that particularly resonates.
And of course if you love the sound of my face to face planning days then the next one is already booked for the 3rd December and you can find all the details right here.
I would absolutely LOVE to help you with your own 90 day plan 😊