By - Alina Fridman
There are many reasons why people resort to offering that dreaded discount for their services. Here are just a few. Maybe you can relate:
You might be new to the industry and don't think you have enough experience.
You are afraid of losing the client so you offer them a discounted rate.
You don't know how to show the value in the services that you are offering.
Don't devalue yourself or your services. This is what happens when you offer a discount:
You are attracting the WRONG clients!
These clients will never pay full price for your services.
They don't see the value in your services. All they see is a bargain.
They'll tell their friends and soon enough, you'll have more low-quality clients who will never pay full price. These are the clients you need to watch out for! You give them an inch, they take a mile.
You'll feel bad about giving that discount because it will make you feel like you cheapened yourself and you really did.
When you offer a discount, you are setting yourself up to becoming that bargain-basement brand rather than that luxury brand that everyone wants and sees value in! You need to understand how much you are worth.
Know your costs: Figure out how much time and effort you are putting into your service.
Determine your overhead percentage: Make sure that your prices cover your operating expenses.
Determine your rate: Figure out how much YOU want to be paid. You need to base this on your experience, special skills you have, certifications and training you've acquired, and you also have to know what your competitors are charging in order to stay competitive within your industry.
When you realize your worth, you won't need to offer anymore discounts.