Bev's Blog

We have never been a business that offers discounts or coupons; our reputation and success has always rested on the value of our product rather than price. However, I see more businesses than ever before considering discounts in order to get people through their doors. While coupons and discounts may, in the short-term, generate cash, I don’t believe they are a smart move for business success. In this blog, I want to discuss 3 things to consider before going that route and some alternate ways to get clients through the door. Years ago, I remember our marketing director making the statement, “If you discount it, they (clients) will come (to expect discounts).” I believe this to be a true statement.

#1: Not sustainable as a long-term stategy.

Think about reasons prospects consider your business. They may love your style, your products, how you conduct business, your personality and so forth. Do you want to attract these buyers who love you or price-sensitive buyers, interested in saving a penny here and there? Offering discounts and coupons tend to attract price sensitive buyers who focus on price rather than value and artistry. They are looking for a bargain. Once they use the coupon or discount once, they may never come back. They are only interested in your business because of the coupon or discount. This is not the type of client you can build a long-term strategy on and it is really difficult to ever charge them the full price on any product once they have received it at a lower price.

#2: It could hurt your brand and lessen the value of your product.

Coupons can lower the perceived value of your brand. Especially in a high end business, the offer of any coupon or discount can make you look cheap. We have built our reputation as a boutique studio over years and years, but it could all come crumbling down in a matter of moments if people see our product offered with a discount coupon. Once a client gets your product at a discount, it lessens its value for any future purchase at full price.

#3: What about your loyal clients?

Offering discounts, especially to first-time buyers, can cause a sticky situation with your loyal clients who have spent money with you over the years and paid full price. If someone’s neighbor gets the same product as they have, but for half the price, it can create a problem. Our clients tend to run in tight social circles and they know intimate details about each others’ lives and they would know if this ever happened.

Alternate Idea #1: Gift with Purchase

We run a “campaign” every January and February and have done so for years where we will frame any black and white wall portrait purchased during these months in our gallery frame at no charge. We NEVER discount our photography, but we will use the gift with purchase idea (frame with purchase) as it encourages business during the slow months. However, we are careful about knowing the price of the frame and what we can afford to give as a gift to make sure we don’t hurt our profit margins. Think about items you can use for this ideas that are not normally offered. Try to avoid discounting your photography or giving it away. Give notecards, frames, mats, accordion fold books and so forth, but keep your photography sacred!

Alternate Idea #2: Gifts through Partners

We do drawings at special times throughout the year with our partners. For these events, we give a Session Fee and a portrait of significant size. In addition, we ask our partner to look through the people who signed up to win and choose another dozen that we can send a gift card to for a Session Fee and a smaller amount. This is a wonderful way to get new clients through the door while still maintaining our reputation and brand.

Alternate Idea #3: Working with Charities

This is another way to offer your product at a special price. For example, we do a pet charity event every year and the Session Fee is a $25.00 bag of dog food that will go to our Humane Society. In addition, we offer special collections that are never available any other time of year. This is a wonderful way to get new clients and not dilute future business or our reputation.

Alternate Idea #4: Auctions at Private Schools and Charities

In the beginning, we gave a small gift to a large number of schools and charities. After carefully tracking the type of client each brought us, we narrowed our giving to the two largest private schools in our area and just a few charities. This way, we can give a more substantial gift which draws the right type of client rather than an 8×10 which doesn’t draw that same clientele. It can also lead to special fund-raisers with the schools once you have built a relationship with them. It plants seeds now for a harvest later!

Every move you make in your business has potential for success or failure. Be careful what you choose for quick gratification if it hurts your future success.

Have a great week! Bev

www.timandbevwalden.com