Offering Additional Discount/Free Items at Your Expense

[Jenelle]

I'm coming up on my first show, and starting to make up some flyers to hand out. Does anyone offer discounted or free products (at your expense) for a future booking?

 

[chefkristin]

I'm coming up on my first show, and starting to make up some flyers to hand out. Does anyone offer discounted or free products (at your expense) for a future booking?

If I have double products or an desperate for a show I might but typically no.
PC already has really great Host Benefits.

 

[crystalscookingnow]

I agree with Kristin. If you start off doing that, people may become accustomed to it & you don't want to get started with that. Especially since you're just starting out. Do they still offer the charter gift for hosts within a certain period?

 

[quiverfull7]

I got this article from The Success Factory a week or two ago and I just think it is such good advise I had to share it here. Hope it helps you decide for yourself what is best for your business. Diane

Today's Tip

Subject: Discounting…yes or no?

Tonight's dinner table discussion was an interesting one. Two of my children work at the same neighborhood coffee shop. The coffee shop had a recent change of owners at the beginning of the year. The new and current owner - we'll call him Sam - is in a bit of a dilemma. After owning the shop for nearly eight months now - he is hard pressed to realize a profit. Of course there is the normal three to five year `curve' that applies to any new business, except, that this business has been open - with a very established customer base - for over six years.

So…what's the problem, you may ask.

As in most businesses, there are a variety of contributing factors - including too many Starbuck's within close proximity. However, a HUGE issue is the practice of discounting for `favorite' customers, established by the previous owner. Sam is now trying to do damage control in order to begin to realize some profit without offending the regular customers. It is a tricky situation to be sure.

I share this story today as food for thought for you and your business. Certainly there may be times when you run special sales for your customers. I would caution the practice of discounting too regularly.

Getting into the habit of discounting does several things:

Your customers will begin to balk when you charge full price and only want to buy when they receive a discount.

It devalues your product line.

As in the case of Sam - it is difficult to reverse once started.

MOST IMPORTANTLY - your business is far less profitable when you discount.

As women, sometimes we have difficulty being paid what we are worth. Some of us feel guilty for taking money and therefore “giving a deal” seems like the right thing to do. Men don't do this. Somehow, they are wired differently - I'm convinced of this. Men don't apologize for things they didn't do (ever notice how often women say I'm sorry for something that they had no part in?). Men don't feel bad about or make excuses for money they are paid for a job done; whether in the form of commissions for sales or fees charged if they are a doctor, lawyer, accountant, etc;. The `why's' behind this phenomenon is the stuff self-help books are written about and not the subject of today's tip.

Just remember - you are in business to make money. If you are not in business to make money - then you probably will find yourself with an expensive hobby. Hobbies cost money - businesses make money…period.

 

[Brandi2007]

I have offered products that i had doubles of if I wanted to book a specific date. I always mention that it is a special and not a regular practice. I do tend to give quite a bit away because i feel that it helps me in the long run. If I give away even a $10.00 product for a show that I will make commission on it only makes sense to me. I do however make sure that the host does not get their product until I am at their show.

 

[ChefBeckyD]

I used to offer alot of incentives......but I have discovered that I get just as many bookings by concentrating on our host program!

 

[hperschnick]

I just finished my 90 days. I offered additional $ off of the cookware at one of my shows to get more bookings. (I want pan-o-rama points??) I took like an additional $10-ish off or rounded down to the next 10 increment. I only ended up with 1 extra booking but it was worth it to me. That show is on Monday. I think I will only do it when I have a goal in mind... booking 3 shows in 1 night or filling up a certian month but it will not be my regular practice. Like the article above said... this is my business and I want to MAKE money!

 

[mommyhugz1978]

I have three little chineese boxes that I use at my shows..... they have a photo of a inexpensive PC item... if they book a show with me that night and set the date.... and hold and close the show it's a gift from me to them at their show....

 

[amy07]

I used to offer alot of incentives......but I have discovered that I get just as many bookings by concentrating on our host program!

***nodding in agreement*****
and adding, that often my bookings are better by not offering an incentive---maybe I come across as too needy? Not sure, but it has paid off to focus on the program!

 

[bethsbiz]

I used to offer extra gifts for bookings but often those bookings didn't hold so I stopped doing it. Now, about the only time I offer a booking incentive is if I am really close to a major goal (like a trip....). Then I typically offer extra spending dollars. (*I set the parameters for them earning...for example, I won't reward unless it is a $300 or higher show, etc.)

What I DO do at my shows is provide small extra gifts for certain achievements. I always give the seasons best for the host having the show; I also give a small gift (used to be the bamboo tongs) for keeping the original show date (I thank them for helping keep my biz consistent) and if the host has collected 2 or more online orders, $100.00 or more in outside orders, 15+ adult guests, etc. For these it might be a nylon pan scraper, a large twix-it, etc.

I know there are philosophies about NOT giving other things away but I find that when I do these goodies at a show, potential hosts see that I do recognize hosts who work hard and they seem more likely to book with me (and keep their booking!)