Come on, you know the drill - you’re pitching your product or service to a prospect and they ask for a discount, or match a competitors quote or you simply offer a discount to get the business today. Are your discounts helping you close, or are you just discounting you?
The reality is while discounts may help some of the time, they hurt you all of the time in ways you may not be aware. There’s the trust factor, the profit loss factor and the commoditization factor.
The moment you offer a discount or agree to a discount to win the deal you are automatically admitting that you didn’t really give your best price. This means you “lied”. It brings your integrity into question. They may not say anything to you, but they’re certainly questioning your honesty. I’ll bet if you look back and track your “discount conversion ratio” you’ve lost more deals than won. Those you’ve lost, will never become clients because of trust. That hurts long term.
In terms of profit, if you haven’t crunched the numbers, do you know what it really costs you for every 10% discount you offer? I suspect not, or you wouldn’t offer discounts. Every time you drop your price by 10% you have to sell 22% more to make up for the lost revenue. That’s a ton of extra prospecting and selling, because we know that doesn’t get made up on 1 deal. Talk about shooting yourself and your sales budget.
This leads to the third issue when you discount; you commoditize yourself. The moment you drop your price to meet a competitors is the moment you admit that your offering is identical. There is no differentiation, there is no value and you have no way to win.
Stop discounting you. You are different. You have value to offer. You are not a commodity. You do not need to work harder to make up lost revenue. You are the difference. Your discounts are killing your integrity and your business.
If you are and become what you think about all the time, then what are you feeding your mind? Is it a constant barrage of the local news, celebrity dish magazines, and reality tv? Or, are you feeding your mind substance that will drive your growth?
We hear these types of questions frequently. Most people know they should be reading and experiencing motivating, educational and growth based resources, but most people don’t do what they know.
Rather than give you a long list of the “why you should”, I think it will serve you better to give you list of resources I read and am reading that will help you take your life to the next level. These resources will positively feed your mind and impact your life.
Don’t read them all, or each one for that matter, in one sitting. The best strategy is to read and/or experience a little bit each day. It’s the constant drip, drip, drip on your mind that will condition your success mindset over time. One big experience is great, but will only have limited impact. You need long-term, sustainable impact. So here’s what I am reading now, have read this 1st quarter, and re-read every year:
This is not an exhaustive list, and its an absolutely wonderful start to start feeding your mind the proper nourishment it needs to succeed. Program yourself for success. Stop feeding your mind garbage. Turn off the tv and pick up one that I recommended or anything you find inspirational. The point is, just do it!
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