Why Discounting Is Holding Back Your Business Growth

by Pam Stellema

in Business Development

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Inexperienced marketers often succumb to the habit of discounting their products and services to try to entice new people into their salons.

This is a recipe for disaster in the long run, especially for salon owners who generally cannot source their products or provide their services at a cheaper rate and continue to pay their bills and stay in business.

Often the types of clients who are attracted to your salon because of discounts are not “long-termers” and will constantly shop around for the next bargain elsewhere.

This generally defeats the intended goal of discounting which is often used to attract new clients and grow your database.

Another problem with discounting is that it reduces the value of an item or service in the eyes of your existing customers and instead of purchasing on a regular basis, they will often hold out until the next discount is offered.

This is very bad for your business and your cash flow.

So next time you are tempted to discount a service or product, try “value adding” instead by teaming up your product or service with a complimentary item that will introduce your client to something they may not have tried before.

When you master the art of value adding you will have created a win-win situation for both you and your customers.

You get paid full price for the service that you want to continue to offer at full price and your client benefits from an additional service for free (or at a reduced price).

 

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Pam Stellema

Pam is an industry experienced coach, salon owner, speaker, author and copywriter.She works beside salon and spa owners to show them how to effectively grow their profits and remain in business for the long-term.
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