Discounts are a great way of manipulating people. We think: now I will give a person a discount, and that’s it – I have the deal in my pocket, I can prepare the contract. The problem is that the future client understands perfectly well that you are trying to manipulate him.

Therefore, if you thoughtlessly give a discount, you will not get any benefits. In a good case – you will lose part of the profit, in a bad case – the client.

“But what about it, I offer my customers a discount, make a mailing list, and they come to me!” Of course they do. And they will keep coming.

In this article about Affiliate Marketing Psychology we will tell you when you should give discounts, when you shouldn’t, and how to give discounts so that you don’t devalue your product.

PSYCHOLOGY OF THE MARKET

There are different buyers: someone is looking for cheaper, someone agrees with the price when the product suits the quality. If a person has money to buy and maintain “BMW”, he will not go to buy “Mercedes”.

Even if you offer him “Mercedes” at the price of “Fiat Uno” – he will not buy this car for his own use, because he understands that he will go broke on maintenance, gasoline and consumables. It’s the same in your market.

There are people who just want cheaper. And your job is to figure out if you want to work with them or not. There are always customers who are willing to pay an adequate price, your price, the price at which you feel comfortable working. These are the clients of your market.

For the rest you can give discounts and devalue your product as much as you want. That’s your right. But if you want to stay with “your” customers, to work at a price that you are comfortable with, work. And don’t give discounts.

Another bonus: people see that you often give discounts, and even if they were willing to pay full price when it’s not urgent – they’ll wait and come to you after the discount is announced. You will simply lose profit, although you could have earned more.

Bottom line: if a customer wants cheaper – it’s not your customer. You can give him a discount, but with a high probability such a client will never buy your product without it. And will bring to you 10 more of the same fans of “cheaper”.

And the rumor about you will go that you sell cheaper than the price. And customers who buy without discounts, too, will start asking for discounts. You’ll reach a cheaper market. And you’ll lose profit.

FIRST-TOUCH DISCOUNTS

When a person just came to your website or called the company, he basically does not care how much your product costs – 100 or 150 dollars. He has a budget and needs. The purchase will depend on how you cover these needs. As a rule, any person can move on the budget, if you have coolly worked out his pains and qualitatively explained why it is necessary to buy from you.

The golden formula of sales: first find out the needs, then offer a solution, indicating its value. Only then name a price.

If you have not closed the objections of the client, did not work out the pain – will not take with any discounts. Rather, he will think that you deliberately tipped the price to give a discount and make an imaginary benefit for him. Modern buyers are very skeptical of discounts. They no longer perceive the price reduction as a privilege, but see it as a way of manipulation.

If you have closed all objections – a person will buy without discounts. Adequate people do not expect discounts from the first touch. With a discount will take the one who is initially expensive. But we have already written about this above: such dumping can end with the fact that you enter the market with cheaper prices. It will be difficult to go back and restore your reputation.

Bottom line: if you give a discount on the first touch or just for fun – you devalue your product. The customer may have three thoughts:

    “They give a discount – you can squeeze more.” – The customer will start asking for an even bigger discount.

    “They’re giving a discount – you’ve jacked up the price.” – The customer will think that you are cheating him, and loyalty to your company will decrease.

    “They give a discount – the product is bad.” – The client will decide that if you give a discount immediately, it means that no one buys the goods and you have quality problems.

In any case, it will not play into your hands.

WHEN AND HOW TO GIVE DISCOUNTS

All ways to get a discount should be clear and accessible. Start a loyalty program, give a discount for volume, arrange seasonal promotions, work on customer retention – it works, there are no questions here.

“Casual” discounts can be given to push a customer. If during the negotiations you have done everything possible, you really want to get this customer, the only question is the price – please. But you should present such a discount not as something ordinary, but as the highest good, available only to this customer. He should feel its importance.

If you give a personal discount to a client – you can directly ask him not to spread about it. It is only for him. It’s your shared secret. Then the person will be even more pleasant, and even when he will recommend you to acquaintances – he will not tell you that he himself bought cheaper. In order to indulge his ego.

 – Mr. Black, we are ready to give you special conditions. Usually we don’t give discounts, but for you, as an important (favorite, strategic) client, we can give you a 10% discount. But let’s make it our little secret, shall we? Such conditions are valid only for you!

– Sure!

So you will save your reputation, and the client will realize that you really appreciate him, that he is special to you. Such a client will be very loyal to your company.

You can give event discounts, timed to holidays and dates. Instead of a discount, you can give bonuses: gifts or additional services. You can even release a line of cheaper products for customers who do not fit your price.

But remember, don’t just give discounts when the customer doesn’t expect it and present them as something ordinary. You’ll miss out on profits and reduce the value of your product.