“If I reduce my fee, I’ll take more bookings and make more money.”

This statement assumes…

• People buy on price.
• Cheaper price means more profits.

Will you really sell more? If so, will you make more money?

What you need to consider is that your expenses to provide the service remains the same, the discount is taken solely from your profits.

If your booking sells for $200 and your expenses are $50.  You’ll then make a profit of $150.

If you give 25% discount, you make $100 profit. So to make $300 profit, you must now sell 3 bookings instead of 2. Will you sell more bookings to compensate?

Discounting is a practice that has spread through the internet with eBay and last minute deal sites.

It can work as a lead generation strategy if you have financial back-up or sell from the platform. It can also be used for a ‘last time offer’ training or speaking event.

But you’re on shaky grounds if you intend to use ‘discounting’ as a long term marketing strategy for extra bookings. You may be spiraling down and squeezing yourself out of the market.

Here’s why.

Discounting…

1. Cheapens your product. Your unique course is downgraded to a commodity. Your ‘life-enhancing’ course becomes a mere transaction.
2. Reduces your profit margin. How will you generate the income to grow your business and fund your desired lifestyle if your profit margin is eroded?
3. Raises doubt in the mind of clients. Was the service overpriced in the first place?
4. Attracts bargain hunters. At any time, those clients will defect for a better offer. By charging two different fees for the same service, you are at risk of losing loyal full fee paying clients who represent a better lifetime value.
5. Reduces the number of full fee bookings. “Why should I pay full price? I’ll wait for a last minute deal.” Even worse, you might miss out on the booking once the buying impulse is gone.

As a rule of thumb, avoid discounting your speaking, training or coaching program unless you clearly state that the situation is a one-off, not to be repeated offer. And stick to your word.

Discounting can have a direct negative impact on the profitability of your business. Charge what you deserve!

Download 24 Powerful Offers to Double the Value of Your Training for free (see right sidebar).  Discover ways to increase the value of your speaking, training or coaching business instead of discounting.

Filed under: Pricing Strategies | No Comments »

Do you feel under pressure to sleep less to fit more in your day?

Do you question yourself, “How much sleep do I really need to function properly”?

In a fascinating documentary on Sleep Deprivation, the experts concluded that we need 8 hours of sleep per night:

• 3 hours of shallow sleep
• 3 hours of deep sleep to revitalise our body
• 2 hours of dream sleep to recharge our mind and consolidate memories.

But what happens if you don’t want to sleep your life away?

The consequences are staggering…

“Not sleeping will kill you quicker than not eating.” It can cause diabetes, heart attack, obesity and even depression.

The documentary was centered on the results of tests and observations on a healthy Volunteer, a young man probably in his early 20’s, who was to sleep only 3 hours per night for a week.

Here were the highlights:

• Our brain can go to sleep even though our body is awaken. 25 minutes of micro sleeps were recorded during the Volunteer’s driving tests. The Volunteer was unaware of those micro sleeps. 
• Our physiology can deteriorated in just one week. The volunteer’s insulin production halved placing him in the pre-diabetic range. Chronic sleep deprivation can increase the risk of diabetes by 50%.
• Sleep deprivation deregulates the appetite. It leads to eating more without the hunger being satisfied and therefore increases the risk of obesity and heart attack. Have you ever noticed how we tend to eat the ‘wrong’ food e.g. fast food when we’re tired?
• Tests showed that the Volunteer’s immune system was only half as effective as it was before the experiment.
• The risk of depression is 5 times higher with sleep deprivation.

The experiment ended earlier than expected because the Volunteer’s health became seriously at risk.

Can sleep deprivation affect your professional life?

Yes, for sure. Your performance, creativity and health depend on a fully functional body and mind.

Who wants to hire a sleep deprived Speaker, Trainer or Coach suffering from slow thinking, attention deficit and mood swings?

Consider SLEEP as the best investment in your business.

Stop feeling guilty when you go to bed early because, at the end of the day, you’ll recoup those hours by living longer and healthier. 

Documentary Details:  ‘Awake is the New Sleep’ (Episode 1) of Dead Tired. It was presented on SBS TV Channel in Perth, Australia.

Filed under: Health | 2 Comments »