8 Reasons for selling fear of missing opportunity instead of discounting
Discounting: not!
Giving a discount is not the best tactic for generating sales.
For a start a discount decreases the value and the perceived value of your product or service.
Once you have started with a discount, the next time the customer expects the discount to be at least at the same level or higher. This leads only to lower sales prices and thus less revenue.
Limited package deal: perceived value
By adding on a minor feature, function or an additional device or service the perceived value of the entire package increases.
It is important to specify the pricing with and without the added item.
The pricing difference doesn’t need to be significant: depending on the additional offering a 4 to 6% price difference can be enough.
Enough value for money to become a bargain.
The missing opportunity fear: hot deals
In order to sell the fear of missing the opportunity, this package deal should be a limited offer:
- Limited in time
or
- Limited by quantity: as long as the inventory lasts.
Then the potential customer has the fear of missing the opportunity if he doesn’t decide fast.
Although this is a method used for consumers, it works as well for business purchases.
8 Reasons: Multiple effects and benefits
The method of offering a package deal has several effects and benefits:
1. People are more likely to buy the package deal that has just a slightly higher price tag.
2. People will be inclined to take the decision faster due to the limited offer pressure.
3. People will talk about their purchase (even brag about it) to colleagues: Word of mouth.
4. People will like your solution and possibly buy again: recurring revenue.
5. People get the good bargain empowered feeling.
6. Your total revenue increases.
7. As the customers are used to the additional item, they probably will order and pay for it the next time.
8. Perceived value is high compared the depreciated perceived value for a discounted product or service.
The method of offering an additional item, can be even more interesting if the additional item generates a recurrent revenue stream as it requires to buy consumables from your company.
Examples: a printer consumes cartridges, a staple machine consumes staples, a call answering service consumes calls, …
So don’t try to sell or close a deal by giving a discount as they will decrease your revenue also in the long run.
Give an additional function, feature or an additional device or service at a higher price: your revenue will increase immediately and also in the long run.
How much discount do you give?
How wrong does giving a discount feel now?
Will you be able to offer a bargain package deal?
