When sales slow down, many small business owners reach for a single tactic. They cut their prices. They send out emails announcing twenty percent off, or they run ads for a seasonal clearance.
A discount can get a short burst of attention, but it often damages your business over time.
Discounts train your customers to wait for the next sale. They lower your profit margins and attract buyers who only care about the lowest price. Discounts also do not change the value of what you sell. They simply make your current service cheaper.
An offer is different. Instead of lowering the price, an offer changes the package to give the customer more value. (If you're new to the idea, start with what an offer is.)
Why offers usually beat discounts
A discount changes the math of a sale, but an offer changes how the customer sees it. When you discount, you tell the market your work was overpriced before. You enter a race to the bottom with your competitors.
When you create a proper offer, you keep your core pricing stable, or even raise it, by bundling your service with extras that solve related problems. You give the customer a reason to buy now without cutting your margins.
A direct comparison
Look at a local car detailing shop to see how a discount compares to an offer.
The discount looks like this: "Full Detail Package, regularly $300, now twenty percent off for $240." The business loses $60 of profit, and the customer gets the exact same standard service.
The offer looks different. The business keeps its core price and introduces the "Winter Weather Shield" package:
- What is included: A standard exterior wash, a protective paint sealant against snow and road salt, and a set of heavy-duty rubber floor mats.
- The price: $350 flat rate.
- Who it is for: Daily commuters who want to protect their car's paint and carpets from winter road damage.
Here the business owner raises the total order value instead of cutting standard rates, by bundling products and services around a seasonal worry car owners already have.
Protect your brand value
If you want to build a lasting business, avoid using discounts as your main marketing tool. Put your energy into building better packages that show your value.
When you bundle your services well, you give buyers a real reason to act today while protecting the health of your business.
What to read next
- Learn the basics of building an offer in What is an offer.
- See what should replace a simple discount in What goes in an offer.
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