If you or someone you know is struggling with not making enough sales for their businesses – and they continue to offer discounts, discounts and more discounts … I would love to talk them! Discounting services is an injustice to any company that offers good, quality work. It hits your sales team and reputation right in the gut, generating lack of confidence, bad precedent and overall lower perceived value and even worse than that – discounting your products or services costs money.
That’s money that could of been in YOUR pocket so you aren’t struggling. Furthermore it’s money that you could be INVESTING to make more sales for your business. It cuts your services short and cutting your business short of having the finances to succeed.
Instead, use that money that you loose in your discount to put towards a pay-per-click campaign. For example, one of our clients that has an e-commerce store, was selling a product for about $93 retail. He had a popular discount running on the website constantly, that discounted that item down to about $65. This gives my client, the business $27 LOSS with each purchase. Yikes. So when we started working with him on pay-per-click, we learned that the cost of each sale was going to be a little under $20. So with that knowledge of the conversion rate (-$20 cost + $93 sale = $73 gross profit) we could multiple the conversion rate, this removes the risk. So now instead of selling 100 items x $65 = $6,500 … we put $5,000 of ad spend in each month / $20 = 250 x $93 = $23,250, a difference of $16,750 per month! (mic drop)