One of my most popular older videos was about how we never discounted, 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.
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, recently I found a couple of pretty good reasons why you should offer a discount. It allowed us to close business with some clients we normally wouldn’t been able to, so let’s begin by studying two 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).
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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 business 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 six meetings over the course of the same time, and that allowed us to come down on the price by about 700$. We were able to close the business on the same day and now, once we deliver to him, we’re going to have a solid case study in that business.
Besides, that one case study alone is going to net us five figures
Case 2: When you really want to work with the client
We got approached a few months ago about launching a podcast for a very popular celebrity, who’s been featured in a bunch of TV shows and documentaries (as soon as the podcast launches, I’ll reveal who he is).
So we were asked to reach out to people, coordinate Reddit AMAs, and basically do PR to launch this podcast and try to make it one of the most popular out there.
Normally we charge 10.000$ to 15.000$ for something like this, and yet, I sold it to this guy 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 two reasons you should discount. If I don’t want to work for them, I would never bring down the price, on the contrary it’s actually a good reason to increase it.
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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
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