Your event rental business must focus on margins to stay on top, pay your staff and bills, expand, and much more. However, learn to apply some flexibility to the right clients. Do not discount your products or services too much where value becomes diluted: growth stagnates and your event rental business suffers. Be strategic when offering price adjustments so that they may encourage the right client relationships and repeat business without getting into a unending trap.
Timing Discounts to Drive Sales
Do not extend automatic, "everyone who walks in the door" discounts. This demonstrates a lack of confidence. These should be judiciously applied. Creating a clear focus on what you want to discount, for how long, and what you hope to gain can improve your strategy. For instance, are you aiming to attract higher-end clients to a newer, expensive products but want to create some buzz and get their attention? Think about what your discount is intended to accomplish and set an expiration. Here are some opportunities where a sale comes in handy:
• Driving interest in new products in your collection
• Holiday times and seasonal items
• The anniversary of your event rental business
• Products that are moving slower may need that extra incentive before rotating it out of your collection permanently if they do not generate income.
Recording and Tracking Discounts
Avoid the costly, long-term error of haphazardly applying discounts and faltering on tracking their successes or failures. Goodshuffle Pro allows you to easily apply a discount to a certain client. For instance, do you maintain a preferred event planners list? It might be a good time to streamline your process and policy where only clients from select planners who mesh with your brand receive a small discount.
Goodshuffle Pro allows you to save discounts per the client, or company if you have a repeat corporate client, or you can discount by line item assuming you only want products, but not services, to receive a discount. Using your focus and strategy, effortlessly track how much business a client, or company, has done with your party rental business to determine a discount unique to them. You can review and tag previous Agreements with clients as part of your research.
Your Business Should Be More Than A Discount
According to HubSpot, don't focus so much on the discount, but on these other aspects of your business--especially when you find yourself discounting too much. Here are some guidelines to keep in mind:
• The value your company offers. Are you making your client's life easier, better, or with event rentals sometimes more beautiful and memorable?
• Create confidence in your products, or services. Jumping head-first into a discount can demonstrate desperation and lack of belief in what you do and sell
• Learn your target market and ideal clients. What do these people need that is something you can offer? What is their income level? What are their hobbies? Where do they live? Is your party rental business in close proximity to the event location? This may serve as a much more attractive aspect than someone much further away doing similar things.
Trust yourself that you have the skills, confidence, and experience to deliver something of value to your clients and prospective clients. Know when discounts can help you and when they can hurt you, and use data to see the return on investment in this strategy.
Anna is a wife, mother of two brilliant boys, and the lead designer and creator of Provenance Rentals, a boutique vintage & specialty rentals company in Gardena decorating for the romantic, unique, timeless, and chic client whether the event is corporate, or personal all over Southern California.
Curious how Goodshuffle Pro can help you with your discount strategy?