Looking for a discount strategy that won’t affect your income?
We show you how…
The problem with discounting lies in the fact that many trainers offer discounts without their end financial goal in mind. In other words, they don’t have a discount strategy. As we mentioned in our previous post, there is a way to use discounting effectively. You need some insights into managing your business and how to make it more successful. This is key before you implement any discounts.
What you need to know first
Before you implement a discount strategy, you need to have a clear idea of what you want to achieve in business – your end financial target. This should form the basis of all your business decisions, including your discount strategy. Knowing your end financial goal will indicate how many sales you need to close. You should also know what your average cost per sale needs to be. In short, you need to know what’s going on in your business.
The discount strategy that you can use
The key to using a discount strategy is to not incur a negative impact on your business, and yet add value for the potential client. How can you do this?
Calculate how much you need to receive from a sale to reach your end financial target. (Remember to look at what your average cost per sale needs to be.) Then work out the fee that you would like to get to in the near future.
When talking to a prospective client, pitch the fee that you would like to get to (i.e. the higher amount). Get the client to agree to the value that they will be receiving at this rate. Then tell the client that virtually no clients pay that rate. Explain that your clients get a discounted rate on a pay as you go system (a weekly direct debit system) rather than paying a large upfront fee in cash. Tell the prospective client that the clients on that system pay a discounted rate – and give him/her the rate that you need to receive from the sale (i.e. the lower amount).
Remember that you need to value your services. This is the only way that a prospective client will see the value in investing in your services for the end result.
Why this discount strategy?
There are several benefits to this particular discount strategy. Clients pay via direct debit instead of cash. This makes it easier to monitor and run your business. It also makes it easier to predict your monthly income. A weekly direct debit means you don’t have to keep on reselling your services. Most importantly, clients get a great discount and you get to earn what you need.