Product Discounts

Avoid Perpetual Discounting

A word on product discounts.

I cannot tell you the number of times I see “perpetual discounting” on the internet.



What is Perpetual Discounting?

This is where a consultant, in an attempt to generate sales, discounts her prices to the point where she is making little to no money.

If her distributor discount is 25%, she may offer 20% off (I’ve even seen the full 25% off) on a continual basis to her online customers.

Why is this a problem?

For many reasons:

--The consultant is not making any money

--Heavily discounting the product makes it seem too expensive at a normal price, thus undermining its value

--The customers get used to the discount, and will not buy without it

--It prevents others from joining the company under the consultant, since there is no product discount incentive

--It hurts ALL representatives of the company, as customers do not think the product is worth the price




Occasionally offering a discount is ok. Maybe once every few months if you are short of a sales goal in the last couple days of the month, or as an incentive to those attending Online Vendor Parties to order. But offer a discount too often, and you will kill your business.

And you are in business to make money, right?

There is nothing wrong with charging full price for your items. This is what is intended.

Other options for customers instead of offering discounts:
--Offer free or discounted shipping
--Offer raffle entries for free product
--Offer product samples with purchase
--Offer a small discount (like 10% off) when customer brings in an outside order
--Offer incentives to host a party

Bottom line: resist the urge to offer heavy discounting. It will help you, and the entire industry, in the long run.

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