When you offer discounts, you’re essentially telling your customers that your products and services are not worth the full price or that you are somehow cutting corners. This is not a good message to send.
Marketing VS. Discounting
In contrast to discounting, marketing offers should be incentives that persuade customers to buy from you. For example, you might offer a free bonus for customers who spend over a certain amount. This type of marketing offer is more likely to persuade customers to buy from you, and it sends the message that your product and services are worth the full price and that you appreciate your customers.
If you’re discounting and charging too little, people judge your quality based on what you’re charging for it. If you charge higher prices, you have more money for marketing, and you have more money to go and get other clients and other guests. You have more money to deliver a “wow” experience. That is what’s going to differentiate you from your competition, not a cheaper price.
One of my marketing mentors, Dan Kennedy, always said:
“He who can afford to pay the most for a new customer wins!”
In order to be successful, you need to focus on marketing your products and services and find ways to give added value for your customers without putting yourself in the red
Be In Control Of “The Flow”
Effective marketing offers and campaigns persuade customers to buy from you again, and again, and again (you get the picture.) They reward existing customers for their loyalty and patronage. This type of marketing is more likely to be successful in the long run, as it builds customer relationships and encourages repeat business.
It puts you in charge of the flow of customers to your business, building on the existing relationship you have created with people who already know your products and services and want to do business with you over and over.
Discounts tend to bring in price shoppers who will use their discount and never return because their sole motivator is cheapest price.
WARNING: Don’t train your customers to only buy when you offer a discount. That’s not marketing.