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Your Marketing Handbook

50 marketing mistakes / Mistake #31

Mistake #31 of 50

Don’t automatically discount.

Free delivery, an upgrade or a bonus can beat a lower price and protect your margin.

What it costs you

Every discount comes out of your pocket.

Slow week. You need a reason for people to come in.

So you reach for the easy one. 20% off.

It feels like marketing. It feels like you did something.

A discount comes straight out of your profit.

And the customers who would have paid full price take it too. Then they wait for the next sale.

You didn’t just lower your price this month. You taught people what you’re really worth.

A real example

The groomer who stopped marking down

A dog groomer has a slow February. She runs 20% off every groom for the month.

The book fills up. Mostly with her regulars, who were coming anyway.

In March, the first question on the phone is, “Are you running that sale again?”

Next slow month, she tries something different. Same price. But every groom comes with a free nail trim and a bandana with her name and number on it.

The dogs go home looking sharp. The owners post pictures. Nobody asks when the next sale is.

She kept her price. They got more.

20% off$12out of every $60 groom. Gone for good.
Give more$60kept on every groom, plus a bandana walking the whole neighborhood.

Same slow month. Only one of them paid for itself.

Why it happens

Why everybody reaches for the discount

“It’s the fastest way to get people in.”So is giving more. And you keep your price.
“Everybody else is running a sale.”Then the one who gives more stands out.
“It’s only 20%.”It’s 20% of the price. It can be most of your profit.
“Customers expect it.”Only the ones you trained to.

A discount is the easy answer. It’s rarely the cheap one.

Do this instead

Don’t lower the price. Raise the value.

When you need a reason for people to act, add something instead of taking something off. It costs you a few dollars. To the customer, it feels like a real gift.

Instead ofTry
20% off colorA free deep-conditioning treatment with every color
A cheaper membershipBring a friend, and you both get a free T-shirt
10% off the next serviceA tire gauge in the glovebox of every car that leaves the bay
Money off the first orderFree delivery on the first order
Matching the guy who’s $20 cheaperA good tumbler they’ll use every day, with your name on it
A holiday saleA small gift with every purchase, through the end of the month

Sometimes a discount is the right move. Just make it a decision, not a reflex. Give it a deadline and a reason: “It’s been a year. Here’s 10% off your next visit, through the end of the month.” Discount on purpose. Never by default.

Do this today

Cost: $0Time: 15 minutes
  1. 1

    Look at the last discount you ran. Write down what it really cost you.

  2. 2

    Pick one thing you could add instead: a gift, an upgrade, free delivery.

  3. 3

    Price it. It’s probably a few dollars.

  4. 4

    Write the offer with a deadline, and put it on your counter, your voicemail and your next email.

You kept your price. They got more. Everybody wins.

From the book

Marketing Doesn’t Have to Be Expensive

Chapter 5: Give Them a Reason

Starts on page 40. The whole chapter, plus 250+ ways to market your business, in the free book.

Download the free book

Ideas that fix it

Give them more, not less.

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