Mike Krauseís Sales Sense #14: Discount Doom! How much is enough?

I get it- discounts drive new clients. I understand Groupon and the millions of other companies that are on the deep-discount bandwagon. Don't get me wrong, I'm a bargain hunter too, however the business doesn't always benefit from these massive discounts to grow their business. We all have read about how Groupon and like-minded companies are NOT paying off for businesses:

1. No repeat business-people come once and never come back commonly called "coupon hunters"

2. Under profit margins on the HUGE discounts offered by Groupon

3. Clients perceive establishment as a discount place and are never able to restore value back to full price.

Let me give you an example of ludicrous discounting; this week I received an e-mail offering a $7,995.00 discount off an $8,995.00 item for a complete DVD set with a 12 month membership from a company. These were my first thoughts:

1. Price gouging!!!

2. What value are you TRULY offering to your clients?

3. What about the client that paid $8,995.00? How do they feel?

It's okay to discount on occasion your product/service, but how much is enough?

I would love your hear your comments about discounting:


Michael has spent over twenty years in sales, consistently achieving the highest levels of success in sales, management, and training. With a career and family history devoted to sales (Michael is a fourth generation sales professional), he is a veteran of driving and achieving results across an array of business models and sizes.
He earned his B.S. in Business Administration from St. Bonaventure University where he financed his education by establishing, owning, and operating Perfection ...

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