BRX Pro Tip: Stop Discounting Your Price
Stone Payton: And we’re back with Business RadioX Pro Tips. Stone Payton and Lee Kantor here with you. Lee, what’s your take on discounting fees?
Lee Kantor: Yeah, I’m not a big fan of discounting fees, and especially that’s a lot of people’s go-to move. As soon as somebody pushes back on the price, your instinct is to drop the price. I think that there’s a lot of unintended consequences when you do that.
Lee Kantor: Every time you discount, you’re basically training people that the price is negotiable, and that shouldn’t be the case. And you’re also attracting the wrong kind of clients. Somebody who values price over quality probably isn’t somebody you want to be working with down the road. And they wouldn’t be your ideal customer profile, and they’re not that type of client you’d like to clone and get more of. So, if you’re competing on price, you’re probably already lost the game. You can’t be cheaper than everyone else. And a price war benefits no one in the long run because it’s unsustainable.
Lee Kantor: So, when somebody questions your price, maybe try this instead. Explain the value, not the cost. Walk them through what they’ll get, what changes, what their ROI looks like. If they still can’t justify it, they’re probably not a good fit for your services. And that’s okay. It’s better to walk away from a client who doesn’t value you than to work with somebody who resents your fees.
Lee Kantor: Your action set for the week: next time somebody pushes back on price, don’t negotiate. Instead, ask what would make this feel like an investment worth making? That question alone might help close the deal. But you do not want to be in a price war. You will not win.
