Daily Lab: Change the product, not the price

They’re saying it’s going to be a year of discounts.

And I’m worried about that, because entrepreneurs can be tempted to cut rate when times get tough.

But that leads to lower profit which leads to lessened quality, which only ends at the very bottom.

And along the way, they’ve lost money on every sale.

Look, it’s going to be a tough year for a lot of businesses, but you don’t have to make it harder on yourself.

So here’s what you can do instead of discounting:

Change the scope. Charge less by doing less of what isn’t valuable, but maintain margin. Are your clients reading all that documentation? Is your overhead actually adding value?

Change the manner. Deliver your value in easier, faster, more affordable ways. Does it need to be one-on-one counsel, or could you offer a group course?

Change the timing. Deliver value over a longer timeline, with smaller payments. Could several clients on a longer timeline make up for fewer, right now?

Your ability to deliver value depends on your ability to create it, and that depends on your ability to sustain it.

So don’t discount, but do less. Or do differently. Or do later.

So you’re still doing it when your best clients come back for more.