Add Value, Don’t Discount Prices

One place where a business can re look at what they are doing, is looking at how they are advertising specials. You can offer special values to clients and customers, without losing money. Rather than discounting goods or services, add value to a regularly priced item. This way you are not losing money.

I’m going to use a spa as an example, but this can apply to any business or service.

If you are running specials, rather than offering a discount, give your client something more, considered “perceived value”. If a client is coming in for a facial special, there are two schools of thought on where that value lies with the customer. You can deduct $5-10 dollars off the price of that service, so a client feels like they are getting a deal. The business savvy way to handle this is to give them more value. While it’s a percieved value to the client, it won’t cost you in the long run, and you don’t lose money. Add a free lip or eye treatment during the facial, without discounting it. Now instead of charging a lower price, you can charge the same or higher price, with the “added bonus”. It’s all in one’s perception of where value is.

If you are always lowering your prices to bring people in, something is missing from the equation. People will start waiting for those discounts, and your bottom line will feel the difference.