I get a lot of flak for talking smack about discounts.
Now I ain’t saying discounts don’t have their place
But overuse will smack that smile off your face.
OK, so maybe my rapping skills need more work. Shuddup.**
If what you sell is an expertise-based service, at least try to avoid the following worst practices of discounting:**
1) Not for steep slopes: discounts “steeper” than 10-15% will look amateurish, and attract the worst type of clients.
2) Not for long-term use: avoid giving discounts on retainers, only discount services that are limited in length so you don’t permanently damage your relationship with the client.
3) Not for blanket use: Giving a catch-all “15% off all services” rarely looks good on service-based offerings. It seems desperate and devalues perceived value more or less permanently.
4) Not for fishing: discounting is not suitable for getting new clients, as it sets all kinds of wrong expectations and could lead to “addiction”, where the client waits for future discounts to buy again.
5) Not for retaliation: “price wars” between competitors are a stupid game to play in these markets, which only promise stupid prizes. Those who do not play, win.**
I know these are tempting, I did every single of these at one point or another, and can’t say I recommend the experience. So please take care to stay away from them, or I swear I’ll attempt to write rap lyrics again.**