Discounting devalues your services.
One of the first things discounting does is sends the message to your clients that your services are not worth their full price. Think about it - if you're offering a discount, it implies that the original price was too high and that your services aren't as valuable as they once were. This can be a tough pill to swallow, especially if you've invested time and resources into building your brand and establishing yourself as a high-end beauty business.
When you discount, you're essentially saying, "Hey, our services aren't good enough to command their full price, so we're offering a deal to entice you to give us a try." That's not exactly the message you want to send to your potential clients.
Discounting attracts the wrong type of clients.
Another negative impact of discounting is that it tends to attract the wrong type of clients - those who are only interested in getting a bargain rather than receiving high-quality services. These clients will always be looking for a discount and will never be fully satisfied with your services. They'll be quick to complain, slow to refer others to your business, and may even write negative reviews online. Not only that, but these discount-seekers will often take up valuable time and resources that you could be using to serve your loyal, high-paying clients. And when you do finally raise your prices, these discount clients will be the first to go elsewhere, leaving you with even less business.
Discounting reduces your profit margins.
The final negative impact of discounting is that it erodes your profit margins. When you offer discounts, you're reducing the money you earn per service. While this may seem reasonable, it can have serious consequences. By cutting your prices, you're cutting your profits, which makes it harder to invest in your business, pay staff, and grow your brand.
What should you do instead of discounting to create value for your clients? Here are three tips to get you started:
Offer package deals.
Instead of offering discounts on individual services, consider offering package deals. This way, you can offer your clients a more comprehensive beauty experience while still maintaining your full price for each individual service. Plus, package deals are often more appealing to clients, as they provide more value for the money.
Use sales psychology.
We tell our members that business is not a battle of services; it’s a battle of perception. This means you don’t have to be the best brow artist in town to get clients. Knowing how to create perceived value by using sales psychology in your marketing is the best way to stand apart from the competition and attract new clients.
Focus on client retention.
Once you’ve used the above strategies to get new clients, it’s time to keep those clients forever. Treat your clients like gold by providing personalised communication consistently to ensure they feel the love. By keeping your contact high, you'll be more likely to retain their business and encourage them to refer others. You can do this through organic marketing, which won’t cost you a cent. Keeping your clients longer means your business and income grow more quickly, like compounding interest in a bank account.
In conclusion, discounting is a slippery slope that can have serious consequences for your beauty business. Instead of slashing your prices, focus on creating value for your clients through package deals, added value through sales psychology, and regular communication. By doing so, you'll be able to maintain your full prices, attract the right type of clients, and protect your profit margins in the long term.
In the beauty business, it's all about creating a unique and memorable experience for your clients. So, instead of discounting, why not invest in making your services even more luxurious, personalised, and enjoyable? Trust me, your clients will thank you for it.
If you’d like more hints and tips to get clients for your beauty business, follow us on Instagram @jadestart_ and book in for a complimentary 45 minute zoom chat with us. It’s a no obligation, strategy call where we take a deep dive into your business. It’s all about you.
JadeStart | Beauty Business Coaches