Discount Pricing


Discount pricing – getting your small business going involves setting your pricing, after evaluating how your estimated prices compare with your competitor’s pricing.

But once you know what a fair market value is for the product or service similar to what you offer, do you discount that price to use price as a differentiator with your competition?

Discount PricingWhether you will be charging by the product, project or service, or by the hour, sometimes, it may be tempting to discount your prices, dropping your prices just slightly below what your competition is charging, to try to make some sales.  This sounds like a good way to get some work for your new business.  Of course, you would plan to bring your prices back in line with what others in your profession are charging, as soon as you feel you can keep bringing in customers.

The problem is, if you reduce your pricing below what it costs you to do a project, it means you will have to do more work to make the same amount of money that you needed to make for each job.

As an example:

2 hours at $50 / hour = $100

but 2 hours at $40 / hour only = $80, so you have to do MORE WORK to make the $100 to pay your bills.

Taking a loss to get work will just make you work harder.

As talented speaker and e-commerce whiz Michelle Chance-Sangthong of Online Marketing Goddess once said, “Don’t discount your prices so much you discount yourself out of business!”

Need help getting started with your small business, Contact Jax SEO Works – we like to help small businesses.

  1. No comments yet.
(will not be published)