Comments on: The forgotten cost of discounting

By: Sam Collett

Sam Collett — Tue, 23 Feb 2010 16:24:27 +0000

Great post – thanks for such fab insight!

By: April

April — Wed, 01 Jul 2009 00:19:53 +0000

Cool post, just subscribed.

By: Robert Clay

Robert Clay — Fri, 26 Jun 2009 12:40:23 +0000

Thanks Skip. Interesting observation, I’m sure there’s lots of truth in it. Articulating value and educating prospects and clients are key components in avoiding unnecessary discounting, charging what you’re worth, speeding up buy-in, and many other facets. Check out my articles on telling your story, which is very much at the centre of this.

By: Skip Weisman

Skip Weisman — Fri, 26 Jun 2009 12:23:00 +0000

Robert,
As my business coach continues to remind me and I drill it into my clients, this issue is all about “self-esteem” and believing the value of our products and services. And, adding to that a way to clearly and succinctly articulate that value to our prospects and clients.

Keep up the good work. Skip

By: Robert Clay

Robert Clay — Sun, 21 Jun 2009 15:20:00 +0000

You’re right. Fortunately you can counter that tendency by educating your marketplace effectively. I’ve worked with a number of very commoditised, price driven industries (e.g. vehicle leasing) and took the decision that we just wouldn’t play the “who sells for the best price gets the business” game.

Instead we created a very compelling and comprehensive story which was used as the basis for all subsequent marketing. People bought into the story, understood the value of the entire offering, including the service they received, and price became a non-issue … as long as people understood that they were getting value.

These articles might be useful for you:

http://marketingwizdom.com/archives/category/foundations/unique-selling-proposition/behind-the-scenes-story

I will be posting some other articles up here in the near future that will add to this.

By: Jason Gillman

Jason Gillman — Sun, 21 Jun 2009 14:48:08 +0000

Well said.

I have often argued to the manufacturers of goods that I sell, that the 6-8% over wholesale some of the internet marketers sell at destroys the “value” of the goods those manufacturers make. Because as you say, they customer then sees that as its future cost and expects it to be no more later on.. as a matter of principle.

The problem however, is when a respectable firm (which I consider my own to be) offers a greater service, and actually answers the phones for tech support etc., it is sometimes seen as “gouging” by the public when a 15% or 20% markup is made.

So we then STOP selling certain products which have been exposed at certain markup levels and the manufacturer loses as well.