Discounting To Build Business Hurts You
I've been coaching small business owners for 11 years now, and I can promise you that frequent discounting to build business hurts small business owners more than it helps. It's a business building tactic that doesn't work well for solo professionals and small retail shop owners who attempt to build business through frequent discounting. In fact, I've had a dozen or so clients who were almost forced to close down because a year or two of frequent discounting to build clientele had brought them to their knees, broke and disgusted about owning their own business.
This 2 1/2 minute video tells the story of one online business and gives 3 pricing tips. You'll see how discounting trains your clients to wait around for your next “special deal.”
It's not a good idea to build your customer base on a strategy of frequent discounts and freebies. You can read more about discounting as a business strategy in this article and in this Inc. Magazine article, as well. If you have questions about your pricing strategies I invite you to get help by working with me short term.
Please consider sharing this blog post with other small business owners by clicking on the social media share buttons below. If you've discounted as a pricing strategy I'd love to read your experiences below, too.