Know Your Worth: Why Discounting Is Costing You More Than You Think

By Kayleigh Graham, Head of Partnerships and Growth at Telleroo

Navigating the competitive landscape of businesses in the UK can be a challenging task, and attracting and retaining clients is no easy feat. The temptation to resort to discounting services may arise as a quick solution to win over clients, but it's vital for business owners to consider the long-term implications of such pricing strategies.

THE DISCOUNT DILEMMA

Discounting services may unintentionally convey that the offered services are of lesser value than the charged price, potentially raising doubts about the quality of work. Furthermore, discounting can undermine the expertise that business owners have acquired through years of skill development, experience, and staying abreast of dynamic business regulations. Adopting a race-to-the-bottom pricing strategy may lead to unsustainable business practices, hindering growth and investment in the long run.

THE POWER OF VALUE ADDS

Rather than engaging in a pricing war with discounts, I strongly encourage you to explore the benefits of incorporating value-added services into their offerings. This approach not only distinguishes you from the competition but also showcases a commitment to the success of their clients.

When faced with price comparisons, emphasising the value-added services becomes paramount. While the initial cost may appear higher, the proposal should highlight the substantial value clients receive, making the price less of a concern.

TAILORED CONVERSATIONS

Recognising that small businesses often grapple with intricate decisions in their operations, offering personalised conversations about their goals and plans establishes trust and positions the business owner as a valuable partner in their journey. This also provides an opportunity to uncover additional avenues for delivering services. This can seem “over the top” but understanding that, for example, a client wants to “create a fresh new feel in their office” instead of just “wanting to buy some plants” creates a real opportunity to deliver more value, recommendations and ultimately be part of their journey to achieve their goals. It’s that last part that creates a real relationship and connection between the client and you! 

SKILL DEVELOPMENT AND TRAINING

Many businesses may lack the expertise or skills necessary for certain aspects of their operations. If you can offer guidance on skill development and provide training that significantly enhances efficiency in various business processes, clients will again look to you for future opportunities and see you as the ‘go to’ provider leading to recommendations too! 

EDUCATION AND WORKSHOPS

Hosting workshops or webinars on topics relevant to clients provides valuable knowledge and demonstrates expertise. Creating FAQ sheets or videos addressing common questions ensures clients are well-informed about the services being provided. Imagine if the next time you used a service, they sent you a personalised video about what to expect or how to use the product. How much more likely would you be to use them again or recommend them to a friend?

In the world of business, expertise is a valuable asset. While remaining competitive is important, recognising the true worth of services is equally crucial. By focusing on value-added offerings, you can set yourself apart and demonstrate a genuine commitment to clients' success. This approach ensures sustained growth and distinguishes businesses without resorting to pricing discounts!

ABOUT THE AUTHOR

Kayleigh is the Head of Partnerships & Growth at Telleroo, a fintech company that specialises in automating supplier and payroll payments. With her extensive knowledge of the accounting and finance sectors, Kayleigh has become a well-respected thought leader in the field and regularly shares her insights and expertise through her columns and speaking engagements. Whether discussing industry trends, offering advice on best practices, or advocating for greater diversity and inclusivity, Kayleigh’s contributions continue to have a significant impact on the accounting/accountech space.

Kayleigh Graham