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PROFESSIONAL SERVICES BUSINESS DEVELOPMENT AND MARKETING INSIGHTS

| less than a minute read

Stop discounting - it's harming your business

It's a pretty standard go-to when you're trying to close off your sales before the end of the month. But is discounting actually causing harm in the long run?

Everyone loves a bargain, but by discounting your product you could be subconsciously lowering it's value before your client has even pulled out their wallet.

We naturally see products with a higher price tag as better quality. We assume they must be well made, last a long time and give us a good return on our investment. Take De Beers. Before they launched their campaign to get men proposing with diamond rings, it wasn't the done thing. However nowadays, it seems wrong for a man to get down on one knee without having spent a month's hard-earned salary on a sparkler!

By increasing the price and limiting supply, De Beers made the value of the diamond skyrocket. Probably making it one of the best marketing campaigns ever!

So next time you discount, perhaps weigh out the value of the business gained versus the value your product may have lost.

Most people value something based on it’s price. But as a salesperson it is your job to sell the value of your product or service in other ways. You’re not going to say that your product is the best because it’s the most expensive, right? No (well, I hope not anyway). You haven’t done your job (effectively at least), if you haven’t demonstrated to your prospect that what you’re selling can truly add value to their life. If you go in with a discount in hand, you’re trashing that value and throwing it out the window. And while they still might buy from you, they’re not going to place as much value on it as they most likely would have before.

Tags

content marketing, b2b marketing, value proposition, discounts