Dennis Yu

Giving A Discount - Tread Carefully

Mistake
Ensure that the value you provide your clients is in line with your pricing

Giving discounts or reducing prices seem normal to get more business. But it might not be a good practice in the long run and could be one of the reasons for not being able to score the really big deals.

I know this is the opposite of what most people think, but it’s the truth. Of course, this might not be true for every business; there are always exceptions.

Discounting is considered fear-based selling.

For example, what would you think if a world-class surgeon you were seeing offered you a coupon code for 50% off if you bought surgery by Friday? In one way or another, it creates a feeling of desperation.

Resist the urge to discount your prices.

Because the lower your price, the lower quality clients you attract.

Another point to take into consideration is the fact that depending on the importance of your price reduction, you will attract customers who are able to pay the promotional price but not necessarily the full price. An example of this behavior is restaurants that offer discount coupons on various promotional platforms.

Although these promotions bring new customers, the restaurateurs with whom I spoke told me that the customers who came did it almost exclusively when there were promotions. Very few returned without the coupons.

1) Lowering prices attract lower-quality clients; you will attract people who are more concerned with price than results. Unfortunately, these clients are not exactly FUN to work with.

2) Lower prices push away potential high-paying clients, making that a double disaster.

3) Lower fees will attract clients who push the boundaries. You end up doing way more work than you intended, and mostly these clients are very hard to satisfy.

4) Charging low fees means you get less commitment from your clients. Rather than being ‘all in,’ they’re instead ‘half out.’ The size of a client’s commitment and follow-through will always be equal to the size of their investment

(HINT: the more they pay, the more they’ll actually DO to get results from your service!)

5) Giving large amounts of discounts makes the actual price seem too much.

Of course, we all want to make the client happy instantly, but giving discounts is not a good option, and it is certainly not the only option.

Don’t try to compete on price. Instead, offer an attractive value proposition. Work with your clients to understand their business requirements. In order to close the deal, you need to be bold and know how to get the job done. Here are six steps to close every deal.

Instead of reducing prices to increase demand, provide unexpected added value to promote repeat customers and their recommendations.

I see a lot of smart, good humans who are held back from raising prices because of a “mindset” limitation.

If you want to create urgency, bundle your stuff with industry colleagues and promote events instead of discounting. Never reduce your price unless you are willing to suffer agony.

Ensure that the value you provide your clients is in line with your pricing.

You ultimately need to decide what kind of service provider you want to be. The good news is that it is just as easy to compete on value as price. So choosing the road that leads to less profit makes no sense when you can easily do the exact opposite.

So I’m going to repeat this, “Double your prices and watch your client satisfaction soar”!

Dennis Yu

Dennis Yu

Dennis Yu is co-author of the #1 best selling book on Amazon in social media, The Definitive Guide to TikTok Ads. He has spent a billion dollars on Facebook ads across his agencies and agencies he advises. Mr. Yu is the "million jobs" guy-- on a mission to create one million jobs via hands-on social media training, partnering with universities and professional organizations. You can find him quoted in major publications and on television such as CNN, the Wall Street Journal, Washington Post, NPR, and LA Times. Clients have included Nike, Red Bull, the Golden State Warriors, Ashley Furniture, Quiznos-- down to local service businesses like real estate agents and dentists. He's spoken at over 750 conferences in 20 countries, having flown over 6 million miles in the last 30 years to train up young adults and business owners. He speaks for free as long as the organization believes in the job-creation mission and covers business class travel. You can find him hiking tall mountains, eating chicken wings, and taking Kaqun oxygen baths-- likely in a city near you.
I'm a member of Blitzmetrics Academy and a friend of Dennis to boot. Not only is Dennis highly intelligent and full of great and creative ideas, he's also incredibly generous with both his knowledge and his time. Success couldn't come to a better guy. Thank you for all that you do for the world, Dennis! 🙏

Michael Pacheco

Marketer

Thanks 🙏 for being shining light in this industry. Love what your building for works overseas too network for jobs so innovative. Dennis helped me navigate having bad experiences with marketing agencies and doing dollar a day marketing which has helped my personal brand tremendously. Highly recommend.

Eric Skeldon

Founder at Kingdom Broker

Working with Dennis has been a delightful experience. After meeting him in 2015 I got to collaborate with him on countless occasions. His understanding for state-of-the-art marketing, his implementation, and his leadership put him into the top 0.01% of marketers and mentors.

Jan Koch

Ihr kompetenter Partner für innovative KI-Strategien.

I had the pleasure of interviewing Dennis for my podcast in 2021 and since then we have maintained a friendship that grows with each interaction. I have seen Dennis' devotion to his friends and clients firsthand, and our conversations often result in us talking about how we can provide more value to the people around us. He is someone whom I can ask questions on a technical level, and look to on a personal level. If you have any hesitancy about hiring him, get over yourself and do it!

Isaac Mashman

Help scaling personal brands.

Geez, where do I start recommending Dennis? First, he is an absolutely brilliant marketer who understands where marketing is today and where it's going tomorrow. He also has an incredible passion for the International Worker community. The lessons he has taught me from his almost 20 years of experience hiring International Workers have been immense. Most importantly though. Dennis Yu is someone who wants the absolute best for you and is willing to tell you the truth. Dennis sat with me at a point in my business where I was floundering but did not want to admit it. He asked some very straight forward questions to get me to admit my issues, highlighted the issues, and then helped me create a roadmap to success.

Atiba de Souza

International Keynote Speaker | Video Content Superman | Superconnector |

Dennis, which I had the pleasure of working with is one of the most giving, honest and tell you as it is person I ever know. The knowledge this man has is remarkable and he just gives it out freely. He is not pretentious and always entertain anyone big or small in the industry always willing to help. If you ever get a golden opportunity to work with him or mentored by him say YES!. You will notr regret Dennis, which I had the pleasure of working with is one of the most giving, honest and tell you as it is person I ever know. The knowledge this man has is remarkable and he just gives it out freely. He is not pretentious and always entertain anyone big or small in the industry always willing to help. If you ever get a golden opportunity to work with him or mentored by him say YES!. You will not regret

Nixon Lee

The PR Whisperer

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