5 Tips to Avoid The Nasty Discounting Habits That Kill Your Profits
Episode 73 | Live with the Pricing Lady (Thursdays 15.00 Central European Time)
Dirty, disgusting discounting habits.
Have you ever granted a discount because it was easy, you felt ashamed of your prices, guilty to charge that much, anxious or afraid to ask for it, too lazy to stand up for your value, to be "fair" or to prevent objections?
If so, you're not alone. These are nasty discounting habits. But just because others do it, doesn't mean you should too.
.If so, you've got to cut...it...out.
None of these are good reasons to grant discounts. Discounting is often misused. If that's you then you are not as profitable as you can be. It's time to kick the habit and get smart about when, what and how you might use them effectively in your business.
Join me for this episode of Live with the Pricing Lady where I'll share with you 5 Tips to avoid the nasty discounting habits that are killing your profits.
Here are the episode highlights:
- 0:56 Why do you do it?
- 2:26 How it hurts?
- 3:00 Discounting fallacy
- 4:15 Boundaries
- 5:34 Preparation
- 6:57 Reasons behind
- 9:06 Alternatives
- 9:50 Trade-offs
Quotes from Janene in this episode:
"There are so many reasons to grant them, but there are only a few reasons that are actually valid business reasons to grant a discount. You need to be able to differentiate the times when it makes sense from the times where it doesn't."
"In order for you to understand whether or not it's a good business decision, you have got to do the math to make sure you know, how much volume you're going to need to make up for the loss or the lower price. And where that volume is going to come from."
"The first thing that you want to do is, establish a very clear boundaries for yourself. If you have employees in your business, you want to make sure that the employees who are out there selling what you offer, have clear boundaries to work within as well."
"Discounts today do not guarantee business tomorrow."
"Having offers at different value levels and, i.e. different price levels, will help you be able to navigate that discussion without feeling the urge to grant a discount."
"You have to be able to balance that and make sure that what you're doing in terms of your discounts, your special actions and offers around pricing are actually aligned with your brand and your overall positioning and message."
Links for this episode:
- The Leaky Bucket of Pricing episode.
- The Pricing Tool Kit
- 5 Steps to Pricing Success Webinar
- The full transcript for E73