Are you currently discounting your prices in order to bring in new sales?
Then that’s a bad move.
And if you’re wondering why then here is your answer.
When you discount your product or services, what you are doing is you’re teaching your market to devalue what it is that you are offering.
You’re basically saying, “hey my product/service isn’t worth the asking price, so I’ll give you a break on the price if you’re willing to buy it”
This is also the major reason why Groupon has seen it’s business drop dramatically.
See the problem that businesses soon realize is that in order to take part in a Groupon deal that they have to deeply discount their product or service in order to get volume sales.
That should be a good thing right?
But if you take a closer look at it, what you will see is that those businesses can’t get repeat business.
It’s simple, the customers have gotten the product or service at such a low discounted price that they now do not want to pay full regular price. So they don’t come back.
Think about that for a moment.
Is that what you want your customers to think about your product or service?
That it’s over priced.
So what can you do to still charge your original prices and not get bit by the discount bug?
First off, you need to understand a few things about that little piece of grey matter that sits on top of your shoulders.
Our brains are bad at math.
Yes, I know…that’s hard to believe.
But hear me out for a moment.
When you see a discounted price, your mind has a hard time determining the best deals. It’s the reason why when you see 50% off compared to 35% off the first choice (50%) looks better than the second, even though mathematically the 35% may be the better deal.
It’s called “base value neglect”
Now I’d love to go into great detail about this, however there is a much better way for you to get an understanding about it by going here
One of the takeaways from the article is that you will see better results from your sales if you were to say something like you will get 25% more than if you simply said 25% discount.
Imagine if I said to you that you would get 25% off and when you made it to the checkout I said to you that you can get 25% more. In your mind, that would seem like a better deal to you as compared to if I just said you can get a 43% discount.
This is called a stacked discount by the way.
And what happens is that your mind will overestimate the discount. Even though the numbers would appear to be a better deal.
It’s only when you do the actual math can you determine if indeed it is a better deal.
But I also have one more goodie for you.
If you combine the more tag with the magic word of FREE, them you will create a much more stronger offer that will beat out the age old standard of just saying that you get a discount, or that you get 35% off.
So to summarize things up here.
What you want to do is instead of just using a discount, you tell your potential customers that they will be getting more as opposed to less.
It would look like this.
25% More FREE as compared to 25%off.
You mind is wired to look for gain, and by saying the word more it triggers part of your brain that is responsible for the feeling that comes when you experience true gain. It’s like giving your mind a shot of dopamine.
Test it and see.