Jay Ehret has a new post on the effects of discounting your products and services in order to compete:

What Should You do About Discount Pricing?

I’m noticing an increased emphasis on discounting prices, especially with the emergence of mobile couponing and services like Groupon. Then there was this recent discussion on Eric Brown’s Facebook page. So what should you do about price?

My opinion is that you should almost never lower your price. It’s basically a confession that you were charging too much before you lowered your price. If you think price is really the problem, and not value, offer a lower-price alternative. A “lite” package of your product or service. Two benefits here: this pricing strategy actually helps customers make a decision to buy by providing context, and you’re not doing the same amount of work for less money.

There’s a lot to be said about pricing and discounts, so I asked for some insight from my Twitter network. The responses contain plenty of wisdom and ideas…

There are some excellent comments that he received via Twitter, read the whole thing.

Adding Value Instead of Discounting

My own philosophy is to add value to your product or service, and enhance your relationship with your client rather than offer a discount. Enhance your customer service levels, provide something extra – something unexpected and delightful. At the restaurant that I manage we have created a loyalty program called The General’s Club that now has 700 members. Members that come in time and time again to build their benefits.

What can you do with your business to enhance loyalty and build repeat business? Discuss in the comments.

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