How Freelancers Can Beat the Discount Mindset
In these tough times when businesses are cutting down costs, freelancers are tempted to give discounts to add more value to their services. Even seasoned freelancers do this, without ever realizing the real cost of cutting their prices. Keeping your clients happy is on everyone’s top list. But, will it make you happier in the long run? Should you even give discounts to motivate your potential customers to choose you among the rest?
How to Compete When Others are Cutting Down Prices
Everyone’s into the discount mindset and there’s pressure to stay even that causes freelancing burnout in the end. When you see customers crowd around products with a 70% off price tag on your favorite store, can you still earn a decent living if you will give in to the same pricing strategy? If you want to win over your rivals, you can:
Think of Your Value Proposition
Don’t simply know your numbers and cut down prices, whenever you feel like it’s needed. You may not notice, but giving discounts can label your services as ‘cheap’ and the next time you want a better rate, it will be tougher to negotiate. Instead, offer value by having a bundled option or package, or even a better customer experience. Your clients will be glad to pay more for better service and a peace of mind.
Be Discount-Selective
What we mean here is to be picky of who you’re going to give discount to. Now, the question is: Who is truly worthy of a discount? There’s no right or wrong answer here. You can even do ‘pro bono’ work anytime you want. You may give discounts based on the size of business as well. No matter who you choose, the goal is to gain customer loyalty – and not to give an impression that you can produce great results for less. For present customers, you may give discounts as a token of appreciation; not for retention. Are they paying you on time? How many years have you been working with them?
Go Seasonal
There will always be times when business is slow for any freelancers and you can use discounts here to your advantage. You may even offer holiday or seasonal discounts. The goal here is to entice them to this limited-time offer, and not to market yourself as a cheaper solution out there.. or, you may just be treated as such!
Add Flavor to Your Marketing Mix
Perhaps, you don’t even have to give discounts in the first place, only if you did your homework right – which means, checking out your competitors’ rates and adding spice to how you market your business on the World Wide Web. Is your blog current? Do you have a clear call-to-action message? Do you send out newsletters to your current and previous clients? Do you even have your own portfolio website running on your branded domain name? Personal branding is a must here and if you answered ‘No’ to these questions.. it’s never too late to revamp!
Dump the Discount Mindset
The major factor in giving discounts is FEAR – that if you don’t, you will lose clients. Get out of it and instead, find creative ways in growing your business at a higher price point that you deserve. You can always encounter those who are shopping around, looking for a bargain, and if this is becoming an obnoxious pattern, it’s time to reassess your value as a freelancer. Have a price schedule at hand and analyze the market in your niche so you can play your cards right without devaluing your work and reputation.
The real deal here is to establish your worth in the freelancing world and build long term relationships – to keep clients happy, not cranky! Think of discounts as a means for motivation, an option; not a permanent solution… and give it sparingly, please.
Your Turn
Do you think that giving discounts is good or bad for your freelancing business? Please share your thoughts in the comments below.
When NOT to Cut Your Fee — And What to Do Instead
Something Interesting:
To Discount Or Not To Discount (Your Freelancing Fees)
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