The Evils of Discounting

Inexperienced marketers often succumb to the habit of discounting their products and services to try to entice new people into their businesses. This is a recipe for disaster in the long run, especially for small businesses who generally cannot source their products or provide their services at a cheaper rate. Often the types of clients who are attracted to your business because of discounts are not "long termers" and will constantly shop around for the next bargain elsewhere. This generally defeats the purpose of discounting which is often used to attract new clients. The other problem with discounting is that it reduces the value of an item or service in the eyes of your existing customers and instead of purchasing on a regular basis, they will often hold out until the next discount is offered. This is very bad for your business and your cash flow.
So next time you are tempted to discount a service or product, try "value adding" instead by teaming up your product or service with a complimentary item that will introduce your client to something they may not have tried before.
If you would like to gather more tips and hints about business building, visit my website at www.pamstellema.com.au.

Live life abundantly
Pam