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Dentallabnetwork.com
Business Ideas
To discount or not to discount.....that is my question
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<blockquote data-quote="Jason D" data-source="post: 294789" data-attributes="member: 12217"><p>Asking whether to discount is arbitrary...</p><p>What is a discount? You could double your fees and offer a 50% discount and it’s meaningless.</p><p></p><p>A more important decision is to decide your value proposition: what is it that you offer that others do not at to your price point?</p><p></p><p>the question about discounts is a function of whether or not you are appealing to a market segment - if you’re pricing is incorrect you will not appeal. However, if you are not offering what that market needs price is not the barrier you need to overcome.</p><p></p><p>You need to offer a solution to a problem. A discount is only a solution to the problem “your prices are too high”.</p><p></p><p>Having said that, market segmentation often encourages discounting for specific criteria.</p><p></p><p>My clients pay anywhere from “full coach fare” to a 38% discount based upon specific criteria that are the same for all. It’s not voodoo or a secret, we share the full pricing model with clients so that they can choose the criteria that fit their needs.</p><p></p><p>HOWEVER!!! I only do this because we want a large cross section of the market. If I was a small 1-15 person lab I would have one price and only one price, based upon my costs and desired profitability.</p><p></p><p>TLDR: decide what your market position is, determine your costs and charge appropriately, discount are just gimmicks in a small lab.</p></blockquote><p></p>
[QUOTE="Jason D, post: 294789, member: 12217"] Asking whether to discount is arbitrary... What is a discount? You could double your fees and offer a 50% discount and it’s meaningless. A more important decision is to decide your value proposition: what is it that you offer that others do not at to your price point? the question about discounts is a function of whether or not you are appealing to a market segment - if you’re pricing is incorrect you will not appeal. However, if you are not offering what that market needs price is not the barrier you need to overcome. You need to offer a solution to a problem. A discount is only a solution to the problem “your prices are too high”. Having said that, market segmentation often encourages discounting for specific criteria. My clients pay anywhere from “full coach fare” to a 38% discount based upon specific criteria that are the same for all. It’s not voodoo or a secret, we share the full pricing model with clients so that they can choose the criteria that fit their needs. HOWEVER!!! I only do this because we want a large cross section of the market. If I was a small 1-15 person lab I would have one price and only one price, based upon my costs and desired profitability. TLDR: decide what your market position is, determine your costs and charge appropriately, discount are just gimmicks in a small lab. [/QUOTE]
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To discount or not to discount.....that is my question
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