I am often asked for discounts in my primary business. My clients ask me if should they offer a discount as a way to attract a new client.
The only answer you should ever entertain is…
No - You should not offer a discount. Ever!
The why is simple…
You are teaching your clients:
To never respect your full price offer.
That you will come down on the price.
That they can haggle.
They have the power to not buy at full price and wait for a seasonal or special discount.
Teaching them to think cheap.
That the full price is not worth it.
…the list could go on, but you get my point here.
With that said, you can add value to get a similar effect.
The alternative would look like this -
Instead of discounting down - add value up.
Instead of 50% off - give two for 1
They pay full price - but they get extra value.
It is the same effect - but you keep the higher value price point.
This is often taken way too far by many people, and I'm sure that you have seen a “value stack” done wrong or to the extreme.
Those “but wait, there’s more” offers. You get all of this, plus a set of steak knives.…and you're left thinking “dude, I just came in for some toiletries!”
There is a time and place for discounts, and there is a time for value stacking. I am of the view to never discount, but I will value stack.
The stack has to be relevant. I deal with services and subscription-based products, so I know it is easy for someone to pay full price now and get an extra month or two.
BOGOF - Buy One, Get One Free - or Two Free.
You are technically giving them the same thing as a discount. However, the perception is great as they are getting more “stuff” for the same price.
Rather than the same “stuff” for a lesser price.
…remember it has to be relevant.
I'm not going to add a set of steak knives.
The difference is in perception and the packaging (meaning the way you present the offer)
My experience is that you attract a price shopper. It's something we have discussed at length in the past as a thing to never do because it creates more problems than it is worth.
It is better to add value than to discount down.