Why are discounts a bad idea?

When it comes to closing a sale, business owners often offer to give their prospects a discount. While this will motivate some people to make a buying decision right now, it will usually have a negative effect when dealing with a serious prospect. Especially the ones who are looking for value rather than simply the lowest price they can find. This is because by arbitrarily offering a discount, you are detracting from the perceived value of your product or service. In the eyes of your prospect, if it was really worth the price you originally stated, you wouldn’t offer to give it to them at a lower price. In which case, how do they know that the new, lower price is even appropriate? If they balk, will you lower it again? Guess what? Nine times out of ten, they’ll wait and find out.

By sticking to your price, you solidify the value of your product or service, and ultimately attract a higher quality of client who appreciates that value. By discounting your price without a valid reason, you will attract the type of client that is only interested in the lowest price, has little loyalty and will probably never be satisfied. Which type of client are you interested in earning?