
Why Discounting Doesn’t Work—And What Smart Business Coaches Should Recommend Instead
Stop the Panic Pricing and Start Building Real Profit Power
When business slows down, most small business owners react the same way:
They cut their prices.
Sales dry up? Offer a discount.
Competitor runs a deal? Undercut them.
New leads hesitate? Slash the rate.
It feels like a logical solution—but it’s not. In fact, discounting usually makes things worse.
As a business coach, it’s your job to help clients break the cycle of reactive pricing and learn how to build value instead.
The Discount Reflex: A Symptom, Not a Strategy
When a business owner panics, pricing becomes the scapegoat.
“People aren’t buying. It must be the price.”
But in reality, price is rarely the problem. The real issue is often one of the following:
Poor positioning (they aren’t standing out)
Weak messaging (they haven’t communicated the value)
Targeting the wrong audience
Lack of proof, trust, or urgency
Dropping the price doesn’t solve any of these—it just covers them up. Worse, it trains customers to wait for the next sale.
What Discounting Really Costs a Small Business
Yes, a discount might feel like a short-term win. But the long-term consequences can erode profitability and brand trust.
Here’s what your clients really lose:
1. Profit Margins
A 10% discount might require 20–30% more sales volume just to break even. For many small businesses, that’s unsustainable.
2. Perceived Value
Customers associate price with quality. Drop the price, and your product may look cheap—not just affordable, but untrustworthy.
3. Brand Positioning
When a business competes on price, they become a commodity. If a competitor offers something cheaper tomorrow, they lose the customer. Loyalty built on discounts isn’t loyalty—it’s convenience.
What to Do Instead: Increase Value, Not Discounts
If the goal is to generate more sales, the answer isn’t to lower the price—it’s to raise the perceived value of the offer.
Here’s how you can help your clients do that:
Reframe the Offer
Instead of discounting, stack value.
Add a limited-time bonus
Include a quick win deliverable
Offer extended support or a free audit
This makes the offer feel new, urgent, and more valuable—without cutting into margins.
Focus on Solving a Specific Problem
Generic benefits don’t sell. Pain relief does.
Shift messaging from “what you offer” to “what problem it solves.”
People pay more when they believe your offer solves something important and immediate.
Strengthen the Market-Dominating Position
If the offer is truly unique and positioned well, price becomes a secondary concern.
Help your clients craft a value proposition no one else in the market can match.
Real-World Example: From Discount to No-Brainer Offer
Let’s say your client is a roofing contractor who normally charges $9,500 for a roof replacement.
Sales slow down, and they’re thinking about offering a 10% discount, dropping the price to $8,550.
You step in and help them do this instead:
Reframe the offer with urgency: “Avoid $15K in water damage this storm season.”
Add a bonus: Free gutter inspection + 5-year workmanship guarantee
Share a quick case study or testimonial of a customer who avoided major damage by acting early
The price stays the same. The perceived value goes up. And the trust factor? Through the roof.
Your Role as a Business Coach: Stop the Panic Button
Your job isn’t to co-sign panic pricing. It’s to help clients make strategic, data-backed pricing decisions.
The next time a client says, “Should I offer a discount?” ask this instead:
“What if we could increase conversions without lowering the price?”
Then walk them through:
How to reframe their offer
Where to add value
How to differentiate their brand
That’s how real pricing power is built.
Final Thoughts: The Truth About Discounting
Cutting prices might help your client win today—but often at the cost of tomorrow.
Real, sustainable growth comes from better offers, stronger positioning, and smart pricing strategy.
And if you want to show your clients exactly what these small changes could be worth to their bottom line—we’ve built a tool that makes it simple.
We’ll cover that in the next blog post.
Ready to Stop the Discount Spiral?
If you’re ready to help your clients boost their sales without slashing prices, now’s the time to act.
Book a strategy call today and discover how top coaches are helping their clients:
Raise profit margins
Close more deals
Keep their pricing power
—without touching ad spend or discounting.