To discount or not to discount? When you mismanage promotions or run discounts too frequently, you run the risk of undercutting the perceived value of your products. There’s a time and place for running promotions and discounting products to make sales, but when making more sales turns into sacrificing profit, it’s time to reevaluate. And why discount when you don’t have to?
Here’s how to make your brand and products more attractive and affordable without discounting.
Preserving Product Value is the Key to Brand Longevity
Preserving profit is the bottom line when weighing the pros and cons of discounting. But when you consider the longevity of your brand, preserving the value of your products is more important than anything else.
When you rely on discounts, you sell on price instead of value.
Your customers will sense that and act accordingly. Ecommerce and business consultant Pamela Hazelton says that people who spend less often expect more support. They’re waiting to be dissatisfied because they expect discounted products to perform worse.
On the other hand, according to research conducted by PwC, 86% of buyers are willing to pay premium prices for a premium customer experience. A paramount customer experience has overtaken price not only in the minds of your potential buyers but in the sales strategies of your competitors.
To outlast the competition, you need to find, preserve, and market on the value of:
- your materials and processes
- product sturdiness and longevity
- the pain points your product solves
- the standard of support you offer
- the integrity of your brand
3 Ways to Add Value Without Discounting
To sell on the value of your products, illustrate these 3 elements of your products and company.
What Does the Buyer Stand to Lose by Waiting?
The equipment you’re selling is the missing piece of a vitally important puzzle for your customers. It stands between them and their dream of owning and operating their own business. Waiting to make the purchase means waiting on their dreams. Your message should communicate this sense of urgency without coming off as too pushy. Your equipment illuminates their path to success, and you should make that path as smooth as possible.
Tell the Story of Family
Strong families support each other. Brand loyalty is cut from the same cloth as familial loyalty. When you serve each other, relationships flourish, and in a commerce setting, a flourishing partnership spells profit. Make your consumers feel like family by treating them with the attention you would like to be shown yourself when investing in your dreams.
Break the Total Cost into Pieces
Mistaking affordability for price is understandable, but many of your SMB clientele are looking at ROI and revenue every month. What can they afford now? Breaking the total cost of your equipment into pieces is much more affordable.
Think about buying a car: You’re not only going into the purchase with the total cost of the car in mind. You know what you can afford to pay per month, which will determine the car you buy.
A Different Approach to Make Products Affordable
Part of emphasizing affordability for your buyers is avoiding “sticker shock.” Your equipment costs what it should cost and making it more affordable doesn’t mean eating the loss of a discount. Give your buyers the option to purchase in no-fee installments let them allocate the purchase into their monthly budget. Additionally, with a payment platform like Clicklease, qualifying for financing doesn’t depend on FICO scores or time in business.
Profit margins are always small for small businesses. Price challenges are prevalent, especially now as SMBs try to recover from the pandemic like the rest of us. Give them a helping hand by making your equipment more affordable, not with discounts, but with a payment platform that equally serves both the buyer and the seller.