Price discount is a very hard question in business. One of my most popular 3 Reasons Customers Ask for Price Discounts was about how we never discount price, back when I was still on Inspired Beats.
Well, since then I’ve changed my mind a little bit on that so in this post, I will present you with two reasons why you should discount your product.
What to do if your clients ask for price discount?
Before I start, let me tell you something: discounting sucks as a way to close business.
In general, I don’t recommend it, and if you want to know why, there are some good reasons in the video I linked above.
However, I found recently a couple of pretty good reasons why you should offer a price discount. It allowed us to close business with some clients we normally wouldn’t be able to, so let’s begin by studying 2 cases:
Case 1: No good case study in their industry
Recently I was talking with a video production client, about doing cold email outreach for his company. Normally our pitch is 10 meeting per months guaranteed over the course of 90 days.
Since we’re comfortable working with agencies (especially the mobile app development ones focused on UXU design), I noticed this guy’s agency offered a similar product (B2B service to a similar target).
I’m always interested in expanding our case study range, so I take on clients that are a bit outside of our scope when I know we can deliver, and I know it’s going to open up new businesses in the future.
I saw this agency as a great opportunity, so for them, we actually cut our offer down.
Instead of 10 meetings a month over 3 months, it was 6 meetings over the course of the same time, allowing us to come down on the price by about 700$.
We were able to close the business on the same day and now, once we deliver to him, we’re going to have a solid case study in that business.
Besides, that one case study alone is going to net us five figures.
Case 2: When you really want to work with the client
We received an offer a few months ago about launching a podcast for a very popular celebrity featured both in TV shows and documentaries (as soon as the podcast launches, I’ll reveal who he is).
The tasks consisted in reaching out to people, coordinate Reddit AMAs, and basically, do PR to launch this podcast and try to make it one of the most popular out there.
Normally we charge 10.000$ to 15.000$ for something like this, and yet, we had an agreement for only 2.000$, which is 80 % off.
The reason why I did that is because of his name, and so it ties back to the first case study, where you have a potential client that can open up new business.
So those are the only 2 reasons you should discount your price. Never cut the price if you don’t want to work for them, instead, increase it.
Remember, if you don’t have a case study in their industry, always pitch them your normal price first, and if they push back, bring it down.
If you do have a good case study and you are confident in your ability to deliver, never negotiate on price.
See you next time!