Why Cater to Buyers Who Only Value Discounts and “Deals”?

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Maximize Top Line Revenue

Why Cater to Buyers Who Only Value Discounts and “Deals”?

My mind furiously buzzed with objections when I read the response to a question in an advice column. The writer was uncomfortable that her sister–who was by any measure well-off- drove every business she dealt with to offer her a discount. I wanted to tell that sister that she’s living with a poverty mentality, which is like a drug: as soon as you get one bargain, you’re looking for the next. It’s a very stressful way to live.

More important to me is that YOU do not fall prey to people who demand discounts and deals as the price of getting their business. This is bad business for you. When you let these discount seekers go, you make room for new buyers who appreciate the value you deliver with your fair price.

 

10 Reasons to Not Cater to Discount Seekers:

  • Give a deal once, they’ll demand one every time.
  • When you stop the discounts, they’ll go elsewhere.
  • You don’t create loyalty to your business; you only create loyalty to discounts.
  • Competitors will undercut you. How low will you go?
  • Discounts reduce your profit and your cash flow.
  • Unless you have the size and buying power of Wal-Mart, you can’t make money with constant discounts.
  • Your best customer service is not valued when it’s paired with discounts.
  • You’ll get referrals to more discount seekers.
  • Discounting is incompatible with goals to increase revenue.
  • There’s no limit to creating value and offering it at prices commensurate with that value.

When you want your business to move from surviving to thriving, create a range of offerings with prices that reflect their value to various kinds of buyers. It’s fine to have some easy-to-buy offerings to help buyers get to know you. This is not at all the same as discounts. You’re conditioning your new buyers to expect high value commensurate with price.

Many, many buyers have an abundance mentality: they appreciate their ability to buy based on the value-to-price ratio. These are the buyers you should be attracting. Leave the discount seekers to others. They’ll soon be out of business while you’ll be enjoying prosperity and success.