In common with most companies, we are always looking for ways to increase sales and bring in more enquiries and it is tempting to just fall back on discounting your products and services, but does this actually help build your business?
Unfortunately, when you start analysing the actual life time sales value of this approach, it starts to fall down. Starting from a purely financial point of view, if you make 30% profit on a product and then discount even as little as 15%, you now have to sell at least one more of these products just to stand still – so extra, extra sales effort involved for nothing.
Now we look at your perceived brand value and accepted, this is a little hard to place an actual figure on, but the way I look at it, for example if you are seen as a good, reliable, £3000.00 supplier of product x but then start to discount down even as little as 15%, suddenly you are now a good, reliable supplier of product x but at a price range of about £2,500 to £2,750. This could take you several months and a number of high-ticket deals to recover your perceived value back to the original level.
So what is the solution? Well it comes down to the basics – spend your sales effort in understanding what your customer actually wants from you and why they would choose you rather than another company. At the same time, look for additional products and services that you can add to the proposal, that bring the biggest benefit to the customer and promote these rather than simply slapping on a discount.
It all comes down to understanding your customers in your market place and offering the most appropriate product at the right price, rather than trying to ‘push’ a high price solution at a discount.
Creatively Yours can show you how to leverage the latest online technology to highlight those areas that could win you more sales. For more information why not drop us a line to firstname.lastname@example.org or call us on 01536 23 98 98 and 07393 038172