When Someone Wants a $100 Discount
Summary
- When someone asks for a discount, don't just give a dollar-off deal; offer extra value instead.
- For example, if they ask for a $100 discount, offer $200 worth of extra products or services.
- This strategy works because the $200 worth of extras might only cost me $40.
- Giving a $200 discount would actually cost me $200 in lost revenue.
- With this approach, I save money and give more to the customer.
- Offering extra value encourages customers to use my service or product more, which is always beneficial.
Video
How To Take Action
I would suggest implementing a strategy that focuses on adding extra value rather than giving discounts when someone asks for one. Here’s how you can do it:
Extra Value Over Discounts: When a customer asks for a discount, respond by offering them additional products or services worth more than the discount they're asking for. For example, instead of giving a $100 discount, offer an extra $200 worth of products or services. This means they get more (and better) for their money, and it costs you much less.
Highlight the Benefits: Clearly communicate to the customer the extra value they are getting. It makes them feel like they're gaining more and is more attractive than a simple price cut.
Leverage Low-Cost Extras: Choose extras that are of high perceived value to the customer but have a low cost to you. This could be digital products, extended services, or bundled packages.
Encourage More Engagement: By offering extras, you also encourage the customer to engage more with your product or service. The more they use what you offer, the more likely they are to see its value and become repeat customers.
Measure Impact: Keep track of how this strategy impacts your bottom line and customer satisfaction. Make adjustments as needed to ensure you're maximizing the perceived value and minimizing your cost.
This strategy not only saves you money but also creates a better customer experience, making them feel valued and more likely to keep using your product or service.
Full Transcript
so you ask for $100 discount how about I do you one better I'll give you $200 of extra stuff and the reason I'm willing to do that as a business owner you don't say this is me explaining to you the $200 of service or stuff might cost me 40 bucks whereas giving $200 off the price is going to cost me hard cost $200 and so I'd rather give you $400 of value for 40 or 80 bucks of cost so actually reduce what my effective discount is but I also increase the value for the Prospect and one of the nice valuable things here is that you're just encouraging a customer to use your service more or use your product more which is always a good thing
