Have you ever been to a marketplace where a vendor shouts, ‘Sale! Sale! Sale!’ to attract customers? If so, you know it’s a common practice. But is it the right one for your business? Especially when you’re a second or third-year female entrepreneur trying to make her mark?
Imagine a shop that always has a sale. Customers love it, but they start to expect discounts. They start to wait for sales. They stop seeing the real value of the products.
That’s the trap many business owners find themselves in. They think discounting attracts customers. And it does. But it also lowers the perceived value of their products or services.
If you’ve been using discounts as your primary strategy to attract customers, I invite you to reconsider and I know you will after this blog post.
Think of your pricing strategy as a fishing net – (Yes, I know! This is the daughter of a fisherman writing). You cast it out, hoping to catch as many customers as possible. But if the net is always lowered (just like your prices), you might catch the wrong type of customers. Ones who only come for discounts and never see the real value of what you’re offering.
Why is Understanding the Impact of Discounting Crucial for Female Entrepreneurs?
As a businesswoman, you might think that offering lots of discounts is a good idea. More customers, right? But what if it might do more harm than good?
Imagine you’re selling apples. If you sell them too cheap, people may think they’re not tasty. They might even think something is wrong with them. It’s the same with your business. If you give too many discounts, people may undervalue what you offer.
As women in business, we face unique challenges. Balancing work and family. Meeting society’s expectations. Our own money trauma that has shaped our mindset in business for decades. With all these pressures, it’s easy to think that giving discounts is a quick fix. But it can undervalue your hard work.
A smart discount strategy is key. It helps you find the right balance. You can attract customers without hurting your earnings. It also ensures that your business remains profitable.
So, understanding the true cost of discounts is crucial on a logical and subconscious level. It helps you make smart decisions. It makes sure you’re rewarded for your hard work.
So, how do you attract the right customers without hurting your bottom line? Here are three steps to guide you:
Understand Your Value through Your Customer
This is your product’s or service’s real worth.
It’s what you’re offering to your customers that they can’t get elsewhere but it goes beyond of what you think. Like we mentioned in our previous blog post about pricing strategy when you understand that your prices not only serves you but attracts and serves your clients, you will conquer understanding the value of your offers and discounting becomes an option.
In fact, that is the origins of discounting or free sampleling anyways! – When you understand your costumer’s journey and the value of your services or products through their eyes It’s like the unique pattern on a butterfly’s wings, which cannot be replicated. Because you get them and so your prices!
Clear the Mindset Anchoring the Discount:
Once you understand the value, it’s time to overcome any financial trauma that might be clouding your judgment.
Your price should reflect your value and cover your costs. It’s like setting a price for a piece of art. The price isn’t just for the canvas and paints; it’s for the artist’s skill, creativity, time, and the customer’s experience.
If you’re struggling to see your worth and price your offerings accordingly, financial trauma might be the underlying cause. That’s why I’ve developed the SPS series to assist with this reprogramming.
Communicate Your Value
Once you’ve addressed any financial trauma, are confident in your value, and have set the right price, make sure to effectively communicate this value to your customers! It’s like a peacock flaunting its colorful feathers. Show your customers why your product or service is worth the price.
Remember, discounts aren’t inherently bad. They can be a powerful tool when used sparingly and strategically – I make sure to give you those insights inside of the SPS Series – However, over-reliance on them to attract customers can undermine your business’s profitability and sustainability.
Are you ready to break the discount cycle and start attracting the right customers?
If so, I invite you to download here the SPS Series: The Mindhacking tool to stop pricing doubts. It’s time to step into your power.
It’s time to ensure your business is profitable and respectful of your time and effort.