Yesterday I gave you some lines from my speech as I officiated my niece’s wedding as well as why Dave is hanging the ISIS flag out the front of his house.

Speaking of not being able to afford a security system and now having 24-hour surveillance from both the FBI and the CIA…

My Drunk Aunt had some issues at her new job and here’s what happened:

My Drunk Aunt: *smiling ear to ear* Hey Boss, how’s it going?

Boss: I told you as head of security your job is to watch the Office.

My Drunk Aunt: *clicks remote* I’m on season 6 but not sure exactly what this has to do with security?

Boss:

In other news from my BCS podcast…

Make people envious of who you are and what you do… not what you have.

Anyhoo…

Your one PROFIT ACCELERATION THING today is:

‘Determine What You Can Afford’

For a frame of reference, to offer a 10% discount, the average business needs to increase sales by 33% to break even.

That’s kinda mind-numbing and a very good reason not to discount.

But maybe their (your high-end coaching client) business really is different?

Run the numbers to determine what sales volume increase you’d need to account for your clients’ discount (10, 20, 30%?).

Is that a realistic outcome?

If you’re aiming for a 10% increase in sales, but sales volume must increase by 33%… there are better strategies to get the desired result (profit).

But if they’re trying to get rid of old merchandise, and a 30% reduction in price only requires a 10% increase in volume to cover costs… that’s more palatable.

Or when they want to boost the average dollar sale (fries, super size, make it into a meal), make sure that the amount they require customers to spend is high enough to account for the discount and still include an increase in revenue.

It can be helpful to establish a minimum profit margin, or an average daily profit margin, so you can cover overheads and have a clear measuring stick while you evaluate the merits of different discount strategies with your clients.

Remember they always have options.

Consider whether they need to offer the discount to their entire market, or can they segment their list and limit the offer to those who need it. Example: an offer for members from their customer loyalty program only.

Is the discount needed to stay competitive, or can you create new product lines that will have a longer-term impact on the competition and increase market share?

Can the market afford what they’re selling right now or is it a seasonal offering – regardless of the discount? You need to time the offer correctly.

Example: January is generally a rough financial month for most consumers, so your discounts will be focused on moving old stock, not increasing sales volume.

Example 2: North Americans are often away in July / August and Australians shut down for December / January, so timing should be factored at these times of year.

Example 3: Discounting winter clothing / snow skis at the beginning of winter is a dumb idea and a great way to make less money.

Discounting winter clothing / snow skis in the summer is likely a good idea and a great way to move old stock (they have a medium and an XL in stock but no other sizes in that jacket) and make room for next year’s inventory.

Ask them the following questions when making your decision:

How deep does the discount need to be to have the desired effect?

How much can they afford to discount?

Do they need to discount all products equally?

Can they use coupons to “code” the offer?

Is the discount conditional?

How can they structure the discount to achieve the desired perception?

Generally, try to get away with the lowest possible discount cause it crushes margins.

If the goal is to move product quickly for shelf space… use the biggest discount they can afford.

In this case, you’re just trying to recoup your costs, so a deeper discount will encourage faster sales and move more dead inventory.

Lastly, make sure you give the discount a time limit to create urgency and manage perception.

Discounts should be a limited-time offer, not a standard practice.

Remember… to offer a 10% discount, the average business needs to increase sales by 33% to break even.

Your clients should be strategic when discounting… but seldom are.

You heard it here first.

Now, pick up the phone and go help someone.

Obsessed with your business coaching success,

Karl Bryan

Founder, Focused.com

PS. “The loudest BOOS in baseball always come from the cheapest seats.” Babe Ruth

PPS. If this helps and you want it to really sink in… GO TEACH IT to someone cause that’s the best way for you to learn it. A friend, your spouse, a prospect, a client etc…

*Don’t plagiarize my work like a lame arse.

PPPS. Marriages break up from lack of money… over lack of love X 100. Business failures lead to destruction, addiction, depression, anxiety, suicides, and unfortunately, far more.

As good business coaches, we save marriages, save families, save kids from self-destruction… we save lives!

A true life of purpose.

PPPPS. If you’re looking for a proven system to follow for your coaching…. I created Profit Acceleration Software™ and high-end step-by-step training to support it…

We did a training that will teach you ‘A strategy that can DOUBLE your clients’  bottom-line profits using exponential growth without spending more on marketing.

Imagine finding your high-ticket coaching fees BEFORE you start coaching your new clients?!  And a proven coaching system created for you to follow with your new coaching client.

Access the free training here

PPPPPS. Forward this to someone that needs to subscribe to my daily emails and get a limited-time, complimentary subscription to my business coaching magazine go here:

https://thesixfigurecoach.com/subscribe/

PPPPPPS. They tell me my Podcast is Ric Flair style, Money Makin, Client Getten, Joint Venture Landing, Event Fillin, High-End Coaching Client Findin Gold For Business Coaches.

https://karlbryan.com/business-coaching-secrets-podcast