Why am I a discount-phobe? Because in a little over 30 years of growing businesses by as much as 3 or 4 times their original size, it has always been through a process of eliminating discounting. In other words, reducing discounting has not been the result; it was the cause of growing those businesses that much.
I am convinced that there isn’t a business out there that has to base its business model upon discounting.
Now I’m not such a hard-core knuckle-head that I don’t recognize a place for discounting. I believe that a discount is appropriate if there is something wrong with the product. Discounting is also good, when a customer is saving you money somehow.
But it makes me want to poke my eyes out, when I see ads trying to attract customers with discounts on a company’s signature products. It would be better just to say, “We don’t have any idea how to price our product, so come on in and take advantage of us.” That’s truly what customers are thinking when they see discount ads.
So, what causes this insanity? Well, I’ve seen 3 big reasons businesses discount. And all can be beaten.
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