No small business wants to discount their products or services. Yet businesses frequently find themselves slicing their profit margins to compete with big box retailers or bigger service providers. And consumers have been conditioned not to buy until an item goes on sale. So what's a small business owner to do?
Holding sales with steep discounts certainly attracts attention and generates word of mouth, but if you want to stay in business and earn a profit, this strategy won't get you far. When advising clients on marketing strategy, we rarely recommend disounting your core products and services (the products and services for which you are known).
Staying firm on your core pricing requires clear communication about the value you offer over your competitors. When prospects and customers begin to negotiate and argue they can buy it cheaper down the street, you need to be prepared to sell your value. If it's the identical product, do you offer servicing they won't be able to get unless they purchase from you? If it's better customer service you offer, get specific about what's better. It's not enough to say you have great customer service. Every business I've ever talked to says they're service is better than their competitors. What specifically makes your service stellar?
So if you don't discount your core products and services, how do you get people through the door? Chances are, you sell some ancillary products or services. These discounted items ideally lead up to the sale of your core product/service. And you want the discount to result in a price significantly less than anywhere else. At the same time, you don't want to be cheap about your offer. Realize that for new prospects becoming first-time customers, this will be their first impression of your business. You want to deliver a favorable experience and give them a flavor of what is to come if they become a loyal customer.
Approaching your sales with this strategy will allow you to still create the buzz around a big sale, yet hold firm on your core pricing while selling the value of your product or service. For assistance in creating a marketing strategy for your business, contact Rethink Marketing today at 563-580-5657.