Why Discounts Don’t Work - Value vs. Devalue
As industry professionals we understand how demanding our career choice is. We also know how very saturated our market is. We are competing with other professionals at each corner. How do we differentiate ourselves so we don’t have to forfeit our earnings? In upcoming topics, we’ll discuss strategies on creating your unique selling proposition. Today, we want to explain why discounts don’t work. First, let’s differentiate valuing versus devaluing services and/or goods. Would you ever shop at Bed Bath & Beyond without a coupon? Neither would we. How about Lululemon? That’s a joke, right? They never offer coupons. And why is this? Over the years they’ve taught their customers to value their merchandise as a premium choice. And why shouldn’t we do the same for our clients?
It’s simple, discounts devalue. If you pay less on a regular bases for products or services, you’ll come to expect and value them at a lesser price. You’ll be teaching your clients that your services at a discount are “worth-less”. Why do we do this to ourselves? If you’re thinking, “I just offer this to get someone new in the door”. Let us ask you then, how is this working for you? Are you retaining these clients? Or are you having to constantly offer a discount to get them to return? When does this discount campaign end? Please understand that you are reaching a specific type of client when offering discounts. These clients are seeking the next discount as they typically don’t find the full value in what we are selling. Instead of trying to change their minds. We want to change yours.
Friends, you have the power to be exceptional. You do not have to succumb to devaluing your services and or products. For most non-corporate and non-franchise salons and barbershops, we understand that the struggle is real. There’s no one backing you up if things don’t go well. We get it. But choose to be positive. You must change how YOU view your clients in order to start attracting a clientele that views you at a higher regard. Remember, it’s hard to make things easier. You may have some growing pains when implementing change. There is a light at the end of the tunnel and we promise that you will reap the long term benefits!