Discounting without devaluing your offer

A discount isn't good or bad in itself. What matters is what it teaches your customers. Misused, it teaches them your listed price isn't the real one. Used well, it helps them decide now.

Discounts that do damage

• The permanent discount: "-30%" all year round. Nobody believes the struck-through price anymore.
• The discount negotiated on request: the customer who asks gets more than the one who doesn't. Unfair, and word gets around.
• The discount to convince a doubtful customer: if the doubt is about value, cutting the price confirms it.

Discounts that help

• Commitment: two months free on annual billing. You gain cash and retention.
• A date: a launch offer that really ends on an announced date.
• Scope: a lower price for less, rather than the same thing for less.

How to announce it

Always give the reason for the discount. "Launch offer until 30 September" or "two months free because you commit for the year". A discount with no reason looks like an inflated price.

Keep the date

If the offer ends on the 30th, it ends on the 30th. Extending once teaches everyone your dates don't count.

The number to track

The share of your revenue sold at a discount. Above a third, your listed price isn't really your price anymore.