Time to read: 1 minute 49 seconds
I hope everyone had a nice Easter.
I took the long weekend off, away from work to just decompress a bit and get clear on what I'm doing moving forward.
Easter itself was a weird one for me as I was by myself during day 8 of my half month quarantine - but apart from that, I can't really complain.
I did have a little care package get dropped off to me, though, so that was nice.
Things are going pretty well, all things considered, and I think for many of you as we settle into what these isolation periods mean for our lifestyles and businesses, we're realising ways to get around the worst of these restrictions.
Now, onto something I'm seeing a lot more of at the moment which ISN'T a good way to react to any drops in revenue you may be seeing ...
During a downturn, the first thing many businesses do is offer discounts to attract new customers.
And unless your whole business model is built around the lowest prices or heavy, everyday discounting, this isn't a good idea.
It's not just the fact that you're making less profit on every sale.
It's not just the fact that you need to sell an insane amount more to make the same profit you would've had you sold it at a normal price.
It's not just the fact that you can get caught in a discounting 'cycle'.
There are much bigger, deeper underlying problems that can happen when you begin to discount and it gets dangerous when you do it frequently.
I wrote a short article on this a few weeks ago which is getting a little traction lately.
It seems the discounting 'strategy' is rearing it's ugly head again and people are looking for alternate options.
Here's the link to read the article and get that discounting alternative:
- You'll see why discounting is more dangerous than you think, especially in the long-run.
- You'll discover a realistic alternative to discounting which you can apply over the weekend to transform your business results
- You'll hopefully never use discounting as a long-term customer acquisition tool