Shanli Liu, CPA, CTPFreedomfolio · I help 7 to 8 figure service business owners and ecommerce sellers keep 10K to 75K of profit- without IRS headaches | CPA. Virtual CFO. Tax Resolution Pro | $5MM+client tax savings | Book a free 15 min strategy call

When Someone Wants a $100 Discount

Name: When Someone Wants a $100 Discount
Uploaded: 2024-07-30T01:30:01+00:00
Duration: 32 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief advisory segment, Shanli Liu, CPA, CTP explains a pricing negotiation tactic for business owners: instead of granting a $100 cash discount…

30 Jul 2024 · 1 min

Watch on YouTube

0:32

In this brief advisory segment, Shanli Liu, CPA, CTP explains a pricing negotiation tactic for business owners: instead of granting a $100 cash discount, offer $200 worth of additional goods or services that cost the seller far less (e.g., $40–$80). This approach reduces the seller’s actual cost while increasing the perceived value for the buyer, effectively delivering a higher‑value discount at a lower expense. It also encourages the customer to use the product or service more, creating additional engagement and potential future revenue.

Chapters

So you asked for $100 discount. How about I do you one better? I'll give you $200 of extra stuff. And the reason I'm willing to do that as a business owner, you don't say this, this is me explaining to you, the $200 of service or stuff might cost me $40, whereas giving $200 off the price is going to cost me hard cost $200. And so I'd rather give you $400 of value for $40 or $80 of cost. So actually reduce what my effective discount is, but I also increase the value for the prospect. And one of the nice valuable things here is that you're just encouraging a customer to use your service more or use your product more, which is Always a good thing.