Everyone is looking for a deal. In fact, deals are all around us, and most consumers aren’t willing to make a purchase unless they feel they’re getting a great discount. We’ve all been there, in the heat of a competitive deal and really looking to close, so we offer a discount. No harm, no foul. However, if this practice becomes habit you may actually be doing serious harm to your business in the long run.
Discounting is a slippery slope. And once you see how easy it is to close on a deal thanks to discounting, you may turn to it more than you intended until eventually your customers just expect it.
Want to avoid falling down the discount spiral? Here’s what we recommend.
Five Tips to Keep Your Brand Safe from Price Traps
Long-term success and sustainability are at stake, so take the following tips to heart to keep your brand safe from price traps.
1. Focus on Relationships
When engaging a prospect, it’s obvious you want to make a sale.
But if you shift your focus to building a long-term relationship, the rest will occur naturally. You want to make sure that your potential new client and you are on the same page.
You can do this by enacting a clear plan to convert the client-advisor relationship to a partnership. When you’re offering quality, they won’t expect a discount.
2. Give Something Away (Once)
If you give out a freebie only once, you’ll entice your customers without affecting your long-term pricing. For example, if you offer tech services, consider doing a free set-up but maintaining your yearly license fee.
3. Never Low-Ball Yourself
Doing so may allow you to win a client, but is that really a sustainable relationship?
Remember, it’s a marathon not a sprint. If you bring a client on with low rates, they’re always going to expect the low rates. They’ll feel entitled to deals and will likely jump ship if you ever decide to raise fees.
If you teach your customers to buy on price alone, they could move to a competitor for a better price.
Be careful, it’s a trap!
4. Highlight Your Value
When discounting is discussed, it puts all the focus on price.
However, the discussion should have always been about the amazing value and quality service you do or the product you have. You’re doing your brand a disservice when you move the spotlight away from all the great things you have to offer.
Do you really want customers referring you by saying “They have the lowest prices!” rather than “They offer incredible service!” ?
5. Show Clients They Can Trust You
It may seem counterintuitive, but sometimes discounting can breed distrust. If you offer a low price, some clients may wonder if the original price was even fair.
This is another aspect that will likely destroy the potential for a long-term and sustainable relationship.
It may seem like you don’t have many options, but the truth is you must know your worth. Justify your price, be open with prospects, and follow through! When you do these three things, your clients won’t second guess your offerings. Shift your focus to offering value and building true partnerships.
Feel like you need to make some changes to your selling process?
We can help! See how we do it in this blog post.