It's a tough time to run a small business—with many economists predicting a recession and all the uncertainty caused by the US government.

We've certainly yet to see the impact of the massive federal layoffs and cuts to government programs in addition to other economic issues at play.

As a result, many consumers and businesses are already tightening their purse strings and preparing to go without.

In response, many of my students and clients have been floating the idea of offering discounts to boost sales and keep their cash flow, well, flowing.

Here's why I counsel them not to go the discount route: While discounts may work to drive sales, they can also do a host of damage to your business because they:

1. Train Customers to Wait for Deals – If you discount today, why would anyone pay full price tomorrow? You’ve just taught them to hold out for the next sale.
2. Undermine Your Value – Dropping prices signals your original price isn’t justified and you erode the trust you've established that got them interested in buying from you in the first place.
3. Threaten Profit Margins – A 20% discount doesn’t just mean 20% less revenue. Depending on your margins, you might need to triple your sales just to get the income you require.

So, instead of cutting prices, I recommend increasing perceived value to motivate customers to take action.

Here's how you might do that too:

• Add Bonuses – Throw in an extra service or resource that enhances the offer, making it harder to resist.
• Create Tiered Options – Give customers choices (Good, Better, Best) so they can self-select based on their needs and budget.
• Bundle Products/Services – Package offers together or as add-ons at a slight discount (without devaluing individual offers).
• Offer Payment Plans – Make high-ticket purchases more accessible without slashing the price.

Remember: Even when money is tight, people don’t just buy the cheapest option; they buy the best value for their dollars.

These are not the same thing.

​Reach out to me if you'd like some help building a resilient pricing strategy.
​

Until next time,

​
P.S. If you missed it, last week I explored the 3 ways to leverage 3 in your pricing Power Throuple.
​

Your success is our strategy!

​

​Update your profile.

No longer want to receive my newsletter but don't want to miss my special offers and announcements? Click here.
​To completely unsubscribe from all future communications, please opt out below.