Why Discounting Your Services Is a Big Mistake

Why Discounting Your Services Is a Big Mistake

This subject can be applied to business owners in any field—plumbers, electricians, hair salons, a handyman, painters, etc.

Services that are discounted that you encounter every day regardless of whether someone is trying to promote the latest product or service or opening an online shop, or trying to generate more business. Although this may sound like a good idea, it could harm you more than it helps.

It’s not a matter of talking about cutting down on the amount of time you’ll be able to charge to a customer. Perhaps, for instance, you said that setting up two computers would take two hours, but it was four hours. Remove two hours (or perhaps one, based on the tasks you are able to discuss in conjunction with them) and then send them the invoice. Invoice the amount you have taken off; however, the time you charged for must be billed at the average rate. Don’t lower the rate of $100 per hour to just $50. Your rate must remain constant for your benefit and the clients. Your rates are fixed!

You’re Setting a Precedent

If you’re discounting your rates, your customers will become accustomed to it. In the end, if you wish to remain in business or even earn a few dollars, it is necessary to raise your rates. What percentage of customers base their choice of using your services solely because of the price? Find out when your rate increases.

And based on how reduced your rate is, getting them to a more real-world level can take time. Also, along the way, you may lose some customers (which is actually a favorable choice if they do not want to pay a higher price).

This is one instance when referrals can be harmful! If your customer, who you’ve provided services with at a reduced rate, or refers you to another person, they’ll inform them of how good the prices you offer. You’ll then have to offer them the same discount price.

See also  3 Pillars of a Successful Business Partnership

You Can’t Make Any Money.

In addition, you’ll have a difficult time making even. At the moment, I don’t own a repair shop in the retail sector. However, I do have overhead. Advertising and insurance, fuel automobile maintenance, tires, computer equipment, software, tools, magnetics, and business cards are all things that are associated with managing this business.

You should be able to fund your expenses for business and also make some money for your home. Also, you’ll need to consider the current market in your region. What do other repair businesses (your rivals) charge? If you discover that you’re significantly less, it’s the right time to bring your prices up to where they are required to be.

If you’re already in business or contemplating starting your own business, you’re probably looking to earn a profit (or at least I’d hope that you are. Discounting goes in the opposite way. Being able to deliver quality work at affordable prices (for both your clients and you) puts your business on the road to profit.

It Hurts Your Industry

I am always watching the local competition, and I see discount computer repair firms change their locations. There are many reasons why they cease to be in business. However, when I read “$19 Virus Removal! We’ll come to you!” and “I’ll repair anything and give you a free copy of Windows all for $39!” This is a red flag. You can check your local Craigslist ads. Search for computer repair and then check out the insane costs. This isn’t a good idea for them (how do they pay for their bills?) It’s also not ideal for you.

If people see these advertisements and see the prices, they’re expecting those rates from you too. When they inquire about what your prices are, they’re astonished by your response. They don’t realize that the reason that they can offer these services at a lower cost is due to the shortcuts they employ when fixing PCs. Most of the time, they’ll tell you that their “fix” is to wipe the hard drive and then install Windows (which is okay in some instances; however, it’s not an all-inclusive solution). They then install bootleg versions that include Windows, Office, Adobe products, and so on. Offering “value” to their services. This is not a suitable method of business since it puts not just the repair technician for computers at risk but the customer too.

See also  Building a Sales Strategy for Your Small Business

Professional, reliable, and professional computing services will be worth each cent. Companies that charge considerably lower than what is typical may be criticized as overpriced and fraud. These are the people who aren’t around for long. If they make a mistake in a repair, do they plan to repair it? If they repair it, will they repair it correctly this time? (and with no loss of client data as well as without having bootleg programs installed?) They usually work full-time and are seeking income from one-off side projects. They aren’t able to do great work or are available whenever they are needed. I’m not having a problem beginning by doing part-time jobs and working full-time. However, the services must be appropriately priced and the work executed in a timely manner.

It Kills Your Business

I’m always amazed by the rate at which computer repair businesses shut down. From the beginning, it appears as if they treated it as a pastime. Big mistake. Discounts that are huge and “repairing” computers the shortcut way means zero money and a negative reputation. What is the chance for anyone to remain in business by doing this? They won’t.

The ideal clients will) appreciate your service and work and) will not have any issues paying your fees. If they aren’t, they’re probably not your customer. Get moving.

Charge What You Are Worth and Stick to It

Your customers are receiving more than your time. They’re also getting your expertise. The importance of your work should be considered when helping a customer. Repair or service call isn’t just about how long you worked on the issue. It’s about identifying the root of the issue and then figuring out how to solve it. It doesn’t matter if it takes five hours or five minutes. You’ll charge your fee. They’re hiring you due to your technical skills – an area they’re lacking.

See also  Cinderella Actually Had 3 Ugly Step Sisters: The 3 Blocks to Success

There are people who fall for sob stories. A petite old lady that gasps at the price can cause people to offer huge discounts and transform what was originally a compelling service call an enormous loss of money. This is why I always clearly state my rates via email or phone before I go out to meet any new clients. If I am dealing with tiny old women (or anyone else who has an unsettling story to tell), I keep in mind that I did not have a problem purchasing the computer at all and paying $40 per month ($480 annually!) for internet access, $50-100 per month for mobile phone services, McDonald’s for lunch, etc. In fact, fast food restaurants don’t offer discounts based upon the amount of cash each customer is able to deposit in their bank, and why should you?

Today, I do a lot of work at no cost. The idea of giving away time and services is something I believe is lovely to do in certain instances. However, I give it away for free but never with a discount.

I hope I’ve made my case. It’s an issue that pops to the forefront in every business. The basic idea is that it is essential to determine what the market rate is (and the amount you’re worth). Do a top-quality job, offer excellent customer service, and don’t cut your own price. This is the foundation of a business that is profitable.