The Discount Trap
Posted by Shane Murphy on Thursday, November 2, 2006
Last night, I had coffee with a friend who is working to start up a business here in Central Ohio. He’s a good guy with a great personality, and he’s selling widgets. A lot of what he’s going to have to do is network his butt off and get some word-of-mouth marketing going.
And, like so many of us, it’s going to be a long road, but one he can navigate pretty well if he exercises some patience.
But midway through our conversation, the red flags started flying. Before he’s even started — before he’s ever made his first sale — he’s already talking about discounting his products to “get things off the ground.”
He’s PLANNING to discount!
After choking on my coffee, it was time to get serious with him.
What signal does a discount send to a prospect? That you overpriced your widgets from the start, planning to drop the price? That your widget isn’t worth what you’re asking, and only the unsavvy are stupid enough to pay that price?
Or is it that you just don’t have the guts to sell it? After all, it’s easier to just drop the price, isn’t it?
Have a look at this short article over at Solo Business Marketing, where they pulled three critical tips from “Sales and Marketing Magazine” that will help any salesperson — no matter what you’re selling — to avoid the discount trap.