Creating and managing your online business requires you to follow the same basic principals of any business - relying on sound Business Strategies. There are however, a few practices that differ or that just are unique to an online business. Here we share our views and experience with you to help you develop a more effective and profitable online business.

Offering special discounts is not always the best idea

Offering special discounts is not always the best idea

An old but true marketing technique is offering discount prices to attract new customers or increase sales. In this day with so many coupon offers this is now proving to be the downfall of many businesses stop many of these are putting offers out to the market but are in fact costing them money.

The secret is to make special offers that do not cost you money and throw in a service offer that sets you apart.

If your business sells "productised" goods or services that you immediately place yourself in a discount war with your competitors if your offer is solely around that product.

Your best approach is to wrap the product special within a service offer because at the end of the day is your service that will set you apart from your competitors.

Now you still have to offer a service that is not going to cost you. There are a number of ways in which this can be achieved. Utilising staff that are sitting around with otherwise spare capacity, offering an introductory service offer a reduced fee, including an offer of free samples etc. Straight out discounting is not always the right solution and can take you down a path leading to a bigger problem in the future.

There is one last point I will make an this is a personal perspective which you may or may not relate to stop whenever I see someone offering huge discounts (as we see in so many online promotions) my immediate reaction is "soak up till now you have been overcharging is that this!".

Be careful and understand your words in the value to your customers. I don't believe this should be discounted but rather build it up and have your clients and customers understand your words so that they can then value at. To read more about understanding your worst in setting your value why not read our article "valuing your services is critical to staying in business".

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