Do you discount prices in order to attract clients? I once had a client who thought it was a great idea to offer 1 free coaching session for every 3 sessions booked in advance. Her prices were already on the low side, and she had a $25,000 student loan to pay in addition to monthly operating costs of about 40% of her gross income. She came to me because she was working a lot but couldn't afford her car payment and barely had enough to eat. “How can I be so successful and busy, but be so broke,” she asked me.
Pricing your services fairly and correctly is part art, part science. If you decide to discount prices as a marketing strategy you short change yourself. Here are 6 reasons not to constantly discount prices:
- Constant discounting creates expectations in your existing clients that they can always wait for a better deal. Wonder why clients aren't rebooking right away? They are waiting for your next e-mail offering a discount!
- You train your clients that you aren't worth your full price.
- It fosters a believe that you are overpriced to begin with when you constantly discount.
- A campaign of discount e-mails creates customer deafness to discounts – they become numb to the tactic because you have overused it.
- It makes you look totally desperate for clients.
- When you discount too often, in essence your discounted price becomes your full price.
When I pointed out to the client that her prices were, in essence, a full 25% below her stated price she finally got the point. She was working hard and basically discounting herself out of business.
One of my earliest mentors advised me to price fairly but adequately and to “stand tall” once my prices were set. I agree. If you are nervous about how to price what you offer, I invite you to set up a One and Done hour with me and we can talk pricing strategies. Before you discount prices look at other marketing strategies. Your bank account will thank you and your self-respect will increase.