Why Offering Discounts Will Put You Out of Business | Discounting for Online and Offline Businesses


I used to believe that giving people discounts would make you more money, but that’s not the case. Today I’m going to share with you why discounting is the wrong strategy and it will put you out of business.

RESOURCES & LINKS:
____________________________________________
Discounting is for Dummies – Here’s Why And What to Do Instead (video): https://youtu.be/vwZeqbYZS_Q

The RIGHT Way to Drive More Online Sales By Discounting Your Products (video): https://youtu.be/X-QgSpzub0s
____________________________________________


Most people think that “Hey, Cyber Monday, Black Friday, big corporate contracts, why not give discounts? I’m making good money, I have good margins. It’s a great way to boost my sales.”

That’s a wrong philosophy.

What works for Amazon won’t work for you. What works for Macy’s, or Nordstrom, all these other big companies, in most cases, won’t work for you.

And especially if you’re in B2B or in the enterprise world you should never give discounts. It’s the worst thing that you can do.

The first reason why is it sets a bad precedent. You don’t wanna set a bad precedent. The moment you do that, what you’ll find is when people are like, “Oh yeah, you’ll give me a discount? Cool, what else can I get from you?”

They’ll keep asking you for more and more and it’ll never stop.

In addition to that, they’ll also ask you to do more things in the same price. That’s going to attract customers that are the wrong fit for your business.

In which, you’re going to be doing work for them, you’re going to be miserable, they’re not going to be satisfied because you’re not doing a good job for all the extra things that they’ve asked you for.

Plus, you’re not really making any money. You don’t wanna be in that position.

The second thing that I learned is it ruins your brand.

Yeah, the people who buy stuff at a discount may be happy, but all your normal customers who buy from you, which is a majority during normal times, will not be happy because they’re not getting the discount.

You don’t wanna ruin your brand. And if you don’t wanna ruin your brand, stop offering all of these promotions.

Sure during the holiday times, yeah, you may get a boost of sales, but it doesn’t last for long.

And let me go into the third lesson I learned why you shouldn’t be offering discounts. And this is somewhat related to number two.

Now one of my companies, we used to offer a discount.

We found that when we offered a discount, the people who signed up not only grumbled more, caused more support issues, but they churned 29% faster.

Not only were they paying us less, but they were also grumbling more causing more support requests, and they were churning much faster and it was causing us to make less money.

For that reason, we stopped offering discounts altogether.

The fourth reason is you devalue your product or service. You’re going to look cheap. You wanna go upstream, that’s how you make more money.

Devaluing your price, discounting it, is not going to get you there. What you’re going to find is, if you’re giving a discount, people like, “Oh, wow, this isn’t the premiere solution.”

You’re not going to go to Goldman Sachs and ask them for a discount. You’re not going to go to a big company and expect them to bend over backward and give you the price that you want.

That’s not how the world works. Because they know if they give you a discount, they’re going to reduce their margins, they’re not going to be able to provide the service that your customer deserves.

And you gotta think about it. With my ad agency Neil Patel Digital, we help companies grow their marketing. We get them more traffic, more sales. When people come to us asking for a discount, and if we gave them, and we do not do this, but if we give it to them, we won’t be able to provide them the same service because it screws up our margins and in some cases, or in many cases, we can actually lose money on an account.

Why would we want to do that? Because if we lose money, we’re not going to be happy.

There’s no point in us working and actually putting money out of our pocket to fulfill a client.

And the last lesson I have for you is you’re attracting the wrong type of customers. It’s not just about getting a sale, it’s about having customers that last long, that you can upsell, you can downsell.

And when you give discounts, those type of customers aren’t going to keep buying from you unless you keep offering more and more discounts.

It creates a bad habit.

So don’t just optimize for short-term income, optimize for long-term income by not giving a discount.

Optimize for your lifetime value of your customer.


► If you need help growing your business check out my ad agency Neil Patel Digital @ https://neilpateldigital.com/

►Subscribe: https://goo.gl/ScRTwc to learn more secret SEO tips.
►Find me on Facebook: https://www.facebook.com/neilkpatel/

#Discounting #NeilPatel #DigitalMarketing

Twitter Training For Businesses – What To Look For, What To Expect

Twitter training is developed for both people and also firms. The relevance of the training courses is to rapidly bring any kind of customer up to speed on performance in addition to best approaches of use. Essentially, sending a 140 character message would certainly be sufficient. Nonetheless, with the ideal information, the message can be utilized to improve business advertising and marketing efforts.

Online Marketing And Incentive Marketing

Regardless of the company nature, advertising and marketing plays a vital duty in making a particular company grow and also obtain via the hard competitors. This is extremely crucial for you to take into consideration if you desire your service to fit in the market. You need to give this matter the suitable quantity of interest, time, initiative, resources and budget. Under marketing, there are a great deal of things that you have to explore like the different kinds of advertising approaches, marketing devices and so much a lot more.

How To Build An Archival Quality Article Directory?

When Cardinal Richelieu said “the pen is mightier than the sword,” he might not potentially visualize how true this might turn out to be in regarding 160 years later on. In the past writing for enjoyable or for living was the benefit of minority. With the usage of a blog writing platform or a post directory site almost any person has an opportunity to have his/her sights heard as well as reacted to.

Internet Marketing Training: What Are The Best Options Available?

As a devoted internet marketing expert, I can inform you very first hand that there will be several programs presented to you each day that will resemble a “victor”. Each of these programs guarantee wide range, treasures, and also monetary flexibility, but the truth is, numerous will certainly not supply what they have actually promised. So exactly how do you go regarding obtaining the web marketing training that is best for you?

Warning Signs That An Online Marketing Strategy Is Doomed to Failure

There is no doubt that net marketing is something that several companies and companies will certainly continue to use and also establish over the following pair of years. From a cost-benefit point of view, the expense of producing an on-line visibility fars surpass its prices. Obviously, there are no certainties that all web advertising approaches will function.

Outsourcing Your Home Based Business Projects Online

You should treat outsourcing your on-line home based business jobs similarly you would when working with any various other business offline. Look for skillfully qualified individuals who will certainly provide quality outcomes at affordable prices and when you do you’ll be extremely delighted you made the effort to find the ideal people for the job. This write-up checks out when and exactly how to find the top quality experts you require to satisfy your outsourcing requires.

Web Search Engine Marketing – A Way of Cost Effective Marketing

Obtaining internet advertising and marketing for less can be quite a task to achieve. You have a number of options at hand to market your website for a fraction of the cost. You can do it on your own, you can carefully employ a top quality yet economical service, or you can purchase some analytics.

What’s The Top Article Promotion Technique Available Today?

With so numerous different ways to advertise a company online, obtaining exposure must be the last of your fears. Nonetheless, producing website traffic continues to be the leading downfall for many internet online marketers. Post advertising and marketing is by much among the top methods to produce web traffic flow, however the inquiry on many individuals’s minds is what the most effective short article advertising approach is.

How ‘Boring’ Websites Boost Marketing Effectiveness

Although web 2.0 and also all points ‘social’ are latest thing in terms of advertising effectiveness online, why is it so lots of still make use of ‘dull’ sites? The truth is a fixed site still uses benefits that many profitable services recognize and also make use of that adds to their profits! Read on to see 3 factors several companies feel web sites STILL play an essential duty in their advertising success!

Developing Ideas Into Web Content

Internet content is something that is designed to make clear a message. If you are an expert caregiver, your message is just one of hope that provides aid to an individual in need. The message varies with every company, individual, and business.

Internet Marketing: Be Aware Of These Four Important Steps

You’re obviously reviewing this write-up due to the fact that you are looking for methods to generate income online. If your brand-new to web marketing, after that it’s very essential that you read this short article in it’s whole as I have some unique online marketing techniques that can give you the insight and also knowledge called for to generate income on the internet.

Effective Marketing Makes Product Quality Insignificant

In concerns to the internet when it concerns item high quality, reliable advertising plays an extra famous duty in a persons acquiring decision! Although excellent quality items are in demand and valued however your advertising and marketing success depends more on the method than the product itself! Review a lot more to see 3 reasons why your organization success is a lot more dependent upon your advertising efforts than the high quality of the products you offer!

Uses of QR Codes in Business – Increasing the Sales-Force Magnificently

The QR codes are the 2-dimensional codes that can be checked via smartphone cams. These codes have actually come to be vital service methods via which company professionals can enhance the need for their services and products. If you are new in the business as well as intend to boost your service sales pressure, then you need to select the QR codes.

Get the Best Post By Email

Your Best Email

You May Also Like