1. Use Discounts to Show Appreciation, Not to Retain Customers
Before you start applying discounts, think well about your reasons for the tactic. Are you considering offering discounts because some clients demand it? Have some clients left you for a cheaper service provider?Are you afraid you might get rejected if you ask for what you’re worth? These sorts of reasons can greatly undervalue your skills, time and effort. For starters, customers should never feel comfortable enough to demand a discount: if it comes to this, you may have spoiled them, or they may just be far from the ideal customer.
2. Offer Discounts Only to a Few Select Customers
Announcing a general discount plan can be risky. Once done, bouncing back to your normal prices could be difficult if the discount period was limited (for example, a holiday discount) or you change your mind on the strategy because your income is not sufficient. Variable pricing can be tricky, and when prices are lower because of a discount, customers could get the impression that you are able to produce the same quality of work for less money.
3. Offer Discounts Once You Have a Stable Foundation of Clients
As mentioned earlier, implementing a discount strategy is not safe until you have established enough loyal customers to cover your monthly revenue goals. Offering discounts from the start might sound like a good way to attract customers, but it could leave you short in the balance sheet if you’re unable to acquire enough work. If you’re new to the business, impress customers with your abilities, work ethic and communication skills, rather than pricing strategy.
4. Be Careful How You Announce Discounts
Suppose you’ve decided to offer a discount. Depending on your goal, there are ways to announce it that would create the right effect and prevent misconceptions about your pricing and the value of your work. You could either announce discounts publicly on a website or discuss options with select clients.
5. Combine Methods to Minimize the Effect on Your Bottom Line
Discounts don’t work for everyone, and not everyone feels comfortable offering their service at a lower rate. You could show your appreciation to clients by offering a discount on its own or in combination with other elements of a strategy. You could opt to offer extra little services to favorite clients or select groups, as long as they hold some value for the clients.