Price Discounting

Posted 16 Jul 2010

Why is it when times are tougher, money is shorter and everyone is focused on the “GFC” do we lose faith in our business and our abilities, move to a poverty reactionary mindset and automatically start discounting our price?

Why don’t we sell our service or product quality?
What are you competing on?
What is your differentiation in the marketplace?
Why are your clients dealing with you?

Society has been conditioned to barter or ask for a discount. Why bow to the pressure of discounting. Look for alternatives to sell your differentiation or Unique Selling Proposition (USP). Are you able to offer better quality and service; add options of extended warranties, payment plans or upgrade bonuses?

Explore and extend your unique product or service experience by marketing that which is your advantage. (Exploit it)

By having a marketing communication plan, you will have already looked at the positioning of your product/service and its rightful place in the marketplace. A pricing strategy is critical for long term business viability and the covering of business overheads in addition to cost of goods (COG).

Sit back and reflect as to why you are really discounting.

Don’t get me wrong, certain times call for a form of discounting. Bundle services with an applicable saving; pass on freight savings due to volume discount you receive on larger deliveries. All great selling points are where your service now takes the focus off the price. The customer is getting quality service as well as a competitive price.

Don’t sell yourself short and compete purely on price.

John Burkhardt – Gold Coast Business Coach

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