81. Money Matters: Don’t compete on price – the true cost of discounting

When customers say, “You’re too expensive,” that gnawing temptation to shave a few dollars off your quote can feel irresistible. In markets crowded with lowball offers and shrinking margins, discounting seems like the only way to survive. But, even a small discount can slice a huge amount from your profit. 

Today, we’re pulling back the curtain on the real maths of discounting – and why caving on price can quietly destroy your bottom line. Because in a race to the bottom, no one wins. If you’re tired of feeling forced to drop your pants just to land a job, we’ll show you there’s a better way. 

We encourage you to go back to these three pricing episodes: 

• The Most Costly Pricing Mistakes You Can Make in a Trades Business  https://open.spotify.com/episode/5UJ8onXmv2NabVnNgPrGyx?si=cabcf5bd4e004b73
• How to Adjust Your Prices as Your Business Grows… Without Losing Customers (Pricing Part 2) https://open.spotify.com/episode/1NYi3paURCiPgGWZCqUSBG?si=4e25928ff523411f
• What You Need to be Charging in Your Trades Business (Pricing Part 3) https://open.spotify.com/episode/11lRyLnIMJ86EMBJ8bvRld?si=90fd4eafc37a40f4

In this episode you’ll learn:
🔨 Competing only on price guarantees everyone eventually loses, including your business. 
🔨 Customers often compare quotes without understanding scope differences and true value. 
🔨 You must clearly demonstrate capability to justify your pricing with confidence. 
🔨 Realign project scope to fit budgets instead of reducing your quoted price. 
🔨 Protecting your profit margin ensures your business remains healthy and sustainable. 
🔨 Avoid racing to the bottom; educate clients on real costs and quality. 

… Book a free Strategy Session to start your journey toward building a sustainable business and balanced life: www.strategysession.com.au 

And if you’re not already part of The Trade Den please come over to our community on Facebook: 
https://www.facebook.com/groups/thetradeden 

Find out more about Pravar Group at www.pravargroup.com or  https://www.instagram.com/pravargroup 

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