Thread: Do you offer discounts?

I just sent out a mass mailing to all of my former clients offering them a 15% discount off of any package listed on my website. Is that weird?

In hard economic times, businesses usually offer discounts to attract customers, so I thought it would be nice to do something similar. I only offered it to former clients (kind of a "repeat customer" discount, because I appreciate their business and their referrals), and limited it to parties booked by the end of November, for Dec. 1-22. I figured it would be nice to offer a discount to people who have booked me before, if they are planning a Christmas or holiday party and having a hard time affording entertainment this year.

What do you think? Has anyone else ever done this? What was the response? I have almost 100 client email addresses since I started keeping track of them, I'm curious to see if I have any responses.

Is it strange to offer *myself* for a discount? I'm on sale!! ..l;,

I think this is perfectly fine and it's a practice I've used with private lesson students. It's a good business strategy and hopefully some of your clients will take you up on it!

I think it's a great idea!

I'd probably have 'packaged' it as my Holiday gift to them. I've given gift certificates to all my former students before as a way of dragging them back in. I've never tried it as a performer, though.

Let us know what the response is! Maybe we'll all be on sale. (heck, at my age I should be on clearance!)

LOL, Lauren, you are too funny!

I did kind of "package" it as a holiday gift - I said to show my appreciation to all my former clients and as a special gift for the holidays, I am offering them a discount.

I will keep you posted about the response!

Wow, instant gratification...

It worked! Got a call from a former client looking to book. I *just* sent the email about an hour ago!

At our studio we offer "package discounts". The more classes they purchase at a time - the better the deal. I find that the majority still pay per class or purchase just the monthly packet.

Then too - we offer a $10 intro class (some of our local competitors offer 1st class free, but I just cannot afford to do that...)

That's awesome Daniela. I think it's a great idea and it's great to hear it's working (and so quickly, too!).
I'd add one thought. I know I charge more than a lot of dancers in my area. So, if it were me, my discount price would still be at or above the "local minimum", so I wouldn't be undercutting with my sale.

Good point, Samira. I dont' think my "sale" price is undercutting, but it is (obviously) lower than what I normally charge. But when you think about it, aren't all sales really a form of undercutting? For a limited time, you are offering your product or service at a discount to promote business. The discount has to be lower than what others charge to have the desired effect!

I'm not doing this to draw business away from other bellydancers with my low prices - it is a targeted discount. My goal is to convince people, who might not have otherwise hired entertainment, that they can afford it and that they should hire a bellydancer. In other words, but for the discount, it's not likely that these people would hire a bellydancer at all. They are not people actively looking for a dancer.

And I'm not advertising this on my website, so you'll only know about the sale if you've hired me (and paid full price) before.

I think it's a brilliant idea and it shows that you're not just a hit and run dancer. lol If that makes sense. You're giving a present to people who have helped you advance your career.

Originally Posted by danielabellydance

Wow, instant gratification...

It worked! Got a call from a former client looking to book. I *just* sent the email about an hour ago!

Go, Daniela, Go, Go!!

I love it when businesses reward existing customers!! You're not undercutting, you're drawing from you own existing business. And am SO happy you got a response, woo hoo!!!

Got another email...not for the discount, but from a former client looking to book in the future. She wants to reserve me now for her second daughter's bat mitzvah (I danced at her first daughter's bat mitzvah last year). Apprently the show was such a hit she wants to book me again. My email reminded her to contact me. So, not a direct "sale" sale, but the it was a result of the mailing!

Originally Posted by danielabellydance

Good point, Samira. I dont' think my "sale" price is undercutting, but it is (obviously) lower than what I normally charge. But when you think about it, aren't all sales really a form of undercutting? For a limited time, you are offering your product or service at a discount to promote business. The discount has to be lower than what others charge to have the desired effect!

I'm not doing this to draw business away from other bellydancers with my low prices - it is a targeted discount. My goal is to convince people, who might not have otherwise hired entertainment, that they can afford it and that they should hire a belly dancer. In other words, but for the discount, it's not likely that these people would hire a belly dancer at all. They are not people actively looking for a dancer.

And I'm not advertising this on my website, so you'll only know about the sale if you've hired me (and paid full price) before.

I totally agree with all of this. ..g.:
Except one thing. I don't think the discount has to be lower than what others charge to have the desired effect.
You are emailing people who hired you before. They've seen you and know what you have to offer, whereas other belly dancers are "unknowns".
Once you've made people happy with your dancing once, it's much easier for them to simply hire you again than to take a gamble with someone new. Another way to look at it is "They want YOU. They like YOU and will appreciate any discount on your regular rates."
...and it's great that you're getting immediate response. :)

I wasn't necessarily talking about *my* discount being lower than what others charge, just sales in general. My "sale" price is definitely lower than "average", I'll admit that, but not lower than the lowest acceptable minimum. It's not worth it for me to get all dressed up for a gig for the low prices the Suzy Nippletassels charge!

I hope hope hope I didn't say anything wrong or to make you feel defensive. I'm really really sorry if I did.
What I don't think I was clear about was as you are at the point you have an email list of former clients and seeking repeat business, you are already charging more than beginner performers in your area- which is great! 'Cos then there is "wiggle room" with the price in offering your discount. ..g.:
I brought it up though because this situation without that clarification will be used by newer dancers as rationale for undercutting (which I know you're not doing).
I think it's a great idea! and it's great you are getting such positive response.

Samira, you did not say anything wrong! You brought up some very valid points - I just wanted to make it clear to you and anyone reading this thread that I'm not using this as an excuse to undercut. I agree that this can be a great marketing tool but only if it is used appropriately - like you said, if you already have "wiggle room" in your prices.

Anyway, it's working - I'm getting good responses even from people who don't necessarily want to book (ie" "Good to hear from you, I will refer you to my friends, we are still talking about your performance, etc), so I think it was a good idea!

I totally understand your need for drumming up business Daniella, but it does make me a bit uneasy when I think of offering my services 'on sale', especially below market value, even if it's a 'seasonal' sale kind-of-deal...
When folks inquire about my services and cannot afford my prices, I offer to do a slightly shorter show.
As a future incentive, why not offer a slightly longer show for the the same price or add another dancer (like an advanced student who would dance to gain experience) or by adding a speciality number, like tray/sword balancing at 'no additional charge'.
It seems that most of your responses so far have been because you made contact, NOT that you offered to lower your price!
I hope you don't mind my adding my $2 (inflation from 2-cents) here...but we've all worked so hard to get the GP to accept what we offer as valuable that to put it 'on sale' made all my little hairs stand on end...
Gia

I think Daniela's made it really clear that she's not going below the accepted minimum 'market value' in her area.

I don't think offering a discount to repeat customers lowers our perceived value in the marketplace at all. Those are people who know the full price and have already been willing to pay it.

Advertising a cheap rate to the GP would bother me. Having so many 'sales' all the time that no one is every really paying full price would bother me. But this is a smart move to keep business flowing in a bad economy, and perfectly timed.

Originally Posted by Lauren_

I think Daniela's made it really clear that she's not going below the accepted minimum 'market value' in her area.

Daniela wrote: <<My "sale" price is definitely lower than "average", >>
Sorry...I was just responding to what was written...

I don't think offering a discount to repeat customers lowers our perceived value in the marketplace at all. Those are people who know the full price and have already been willing to pay it.

You make a good point there...the original customers do have the knowledge that she's worth every penny!!! But...I wonder how many who refer her will mention that she 'discounts' or how many will return at a later date and ask for a discount.
Gia

I understand, Gia. But she also said it's 'not lower than the acceptable minimum.'

I love your alternative of adding a specialty bit for free!

Originally Posted by Lauren_

I understand, Gia. But she also said it's 'not lower than the acceptable minimum.'

I love your alternative of adding a specialty bit for free!

Gotcha...understood.
Personally, if the client is 'difficult', I'll charge for wearing additional mascara.
..l;,

Originally Posted by Gia al Qamar

Personally, if the client is 'difficult', I'll charge for wearing additional mascara.
..l;,

..l;,..l;,..l;,..l;, I call this the "PIA fee" (the Pain in the A$$ fee).

Originally Posted by SamiraShuruk

..l;,..l;,..l;,..l;, I call this the "PIA fee" (the Pain in the A$$ fee).

LOL...I actually mark on my contract notes "PITA fee"!!!! Great minds...

I think this is a fabulous idea, and the limitations you've placed on it (only people who have paid full price before, only for the holidays) still keep you on level playing field with the other dancers in your area.

Would you mind terribly if I borrowed/stole the idea? I'm so dry on gigs during the holidays, I'd love to see if I can get a response anywhere near as good as yours!

Go for it!

No other responses yet, but it was still worth it- it took me minutes to do and didn't cost anything!

Originally Posted by Gia al Qamar

Daniela wrote: <<My "sale" price is definitely lower than "average", >>
Sorry...I was just responding to what was written...

Yep, lower the prices are lower than "average" for the area but not lower than "minimum", which is what Lauren was saying. So, no harm done in lowering the prices for the whole area. There are plenty of other dancers around taking care of that....

Originally Posted by Gia al Qamar

I totally understand your need for drumming up business Daniella, but it does make me a bit uneasy when I think of offering my services 'on sale'....Gia

I know, Gia, it made me a little uneasy too - I mean, sales are normal but when my product is *myself*, it's kind of weird to go "on sale" .w.:

But with the positive responses here and from my clients, I'm feeling much better about it!