Discount Danger

Deals, discounts, and dead giveaways are often used by new businesses to get the word out about their business. Other than the 3F’s of business, this next round of customers can be detrimental to business growth unless handled carefully. Beware of The Discounters…

Doubt

Your fears are holding you back if you are discounting because you don’t believe people would pay your asking price. You have put time and effort into learning your craft and developing your skills, now deliver with confidence! Prior to becoming Growth Group customers, many entrepreneurs were offering hefty 10-25% discounts for their new customers. When asked why, they weren’t sure but thought the customer wanted a discount. Your target customer will be willing to purchase at your price and refer others to do the same, refrain from offering until they ask.

Discovery

At first, when you test your audience (target market) you may think offering discounts are the only way anyone will be interested in hearing you out. Maybe you’re right and it may work for you. But, how do you then turn deal hunters into customers and fans who are willing to pay to listen to your music or purchase your products? You must set an expectation from the beginning about the value of your work and otherwise, they may want it for close to free.

Demo to Desire

I understand the “try it before you buy it” customer, in some cases I’m just like them. When discovering a new software, I often take advantage of 14 day free trials (some companies offer up to 30 days free). These companies create a greater desire in me to purchase because I have already experienced the greatness of what they offer. Before using the product, I was interested, after using the product I was sold. Create something you can give a preview of or do very quickly to create an increased desire to follow up with a purchase.

Deals

For their dedication, thank your customers with a discount on future purchases or for paying in full upfront. Don’t doubt your fans desire to purchase from you during the discovery of your business, offer a deal for loyalty instead of to “stranger danger” (my karate sensei used to use that term, when I was 11). Referral discounts are also a big hit, and a win-win for everyone involved. Repeat customers know others who would love what you offer, and they’ll quickly share when they benefit too!

A “dead giveaway” is not the way to go when starting your business. It gives potential customers and fans the perception that what you are offering is not worth the full amount, even in the future. So, try new strategies for discounting such as loyalty discounts, only giving when asked, or discounts for paying in full upfront.