Mary Czarnecki explains why discounts often fail to increase revenue and profits and urges business owners to “do the math” before offering dollar or percentage discounts, since the reduced price typically comes directly out of profit while delivery costs stay the same. She recommends calculating how much additional sales volume is required to break even on any discount and avoiding promotions that can’t realistically be offset. As alternatives, product-based businesses can add value with free gifts or bonuses using slow movers or high-perceived-value, low-cost items, while service-based businesses can offer scalable informational products (guides, videos, quizzes, or courses) that complement the service without consuming more time. She invites viewers to share what’s worked for them and what questions they have about discounting and alternatives.
KEYPOINTS:
1. Never offer a discount without doing the math.
Before launching a promotion, calculate how much profit you're giving up and how many additional sales you'll need to make up for that loss. More sales don't always mean more profit, so understanding your numbers is essential before reducing your prices.
2. Add value instead of cutting prices.
Discounts aren't the only way to attract customers. Product-based businesses can offer high-value, high-margin items as free gifts or bonuses, while service-based businesses can create digital resources like guides, videos, checklists, or quizzes that provide value without increasing delivery time or significantly impacting profits.
3. Turn your expertise into a scalable marketing asset.
If customers frequently ask the same questions, consider turning those answers into an informational resource. A downloadable guide, video tutorial, email series, or mini-course can educate prospects, build trust, and generate leads—all while saving you time by allowing you to create it once and share it repeatedly.
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