“How can I get the best price on this?” is generally a good line of thought when you’re shopping. I’m not knocking it.
But if you’re not willing to pay retail for something, for better or worse, that means it has little value to you.
Think about it like this.
Imagine you only have $3,000 to your name for the next three months. It’s not ideal, but it’s survivable.
You really want a $1,500 watch— it’s sharp, has all the latest features, and you’ve been dreaming about it since the concept photos leaked...but you’re probably not going to buy it.
It’s not that you don’t have the money for it. You just don’t want to plunk down that kind of cash for a watch until either the price changes, or your situation changes.
Now take the same scenario, but imagine you could buy a fully loaded, two-story house in a great area for the same amount.
Leaving behind half your money for the next quarter doesn’t seem as bad now! Who wouldn’t live on bologna and tap water for 90 days if they could do it from a beautiful new home?
The house has more value.
How does this apply to ecommerce best practices?
If you’ve built a brand with worth, your product will not be valuable to everyone. If it is, one of three things is happening.
- You’re in bad need of a reality check
- You’re not differentiating properly
- You’re a supervillain monetizing the air we breathe
If your work is growing with people who love what you do, don’t worry about anyone who’s not into it! They aren’t the customers to pursue, and you’ll lose brand viability trying.
But what happens when people who don’t value your product come after you?
Haggling at garage sales and flea markets is expected. With ecommerce and online services, not so much.
When people challenge the value of your offerings, negotiating with them seems tempting. No one wants to lose out on business. But you have to release yourself from the toxic mentality of “needing everyone’s business” and go on the (polite) offensive.
Take a look at this email chain (yes, this was a real life conversation).
That’s a huge discount being requested, and the suggestion that I should be scrambling for their cash makes my blood boil. Because I know the value of my company, my team, and what we’re bringing to the world, a price break of any kind was off the table.
Here was my counter:
Rather than cave out of fear, I tried to change his mindset. Losing a customer didn’t bother me nearly as much as the garage sale mentality!
Unfortunately, he responded like this…
I closed with:
And then I washed my hands of all of it.
Time is the only resource we have that cannot be regained. Why waste it on someone who refuses to value everything Just One Dime has built?
This is what I do instead of discounting services
I have members tell me they made so much money from implementing what I publish for free that they had to get access to what’s behind the paywall.
Why is that?
Because I make sure everyone sees the value in what I’m offering. If I bundle promotional add-ons to memberships, I do so with the knowledge that it increases my brand’s value far more than slicing consumer costs can.
My work is not to be sold at flea market prices. I’m not wasting time slashing my team’s income just because a few people can’t assess worth correctly.
Can you imagine strolling into a Bugatti dealership demanding a car at Toyota prices because ‘Some money is better than no money’? You could do it, but you’d be laughed out the door at best.
Flat discounts can work if they’re done right
You’re not going to hear me say a Cyber Monday sale is ever a bad thing! For some businesses, temporary price cuts can lead to huge boosts!
But if you notice customers are only buying during your sales runs, you need to go back to the basics of product/brand building. There’s something you’re either not communicating or not providing for them, and you aren't going to grow if you don’t get it settled.
Think of your business as a fruit-bearing tree. Pruning every once and awhile helps growth! But that doesn’t mean the answer is always cutting off a branch.
Get out there and grow your harvest. Just make sure you’re keeping things sustainable.