The Problem with “Bargain-priced” Services
No matter what type of business you have or what kind of work you do, you may eventually face an important question: Should you discount your services or products?
Whether it’s a discount marketplace like Groupon or 99Designs, or simply running a “special” on your website, offering discounts is something that requires careful thought.
Why? Because discounting can have long-term effects on your business, your bottom line, and your reputation.
Let’s take a closer look at when discounting might make sense — and when it should be avoided.
Discounting in Retail
In retail environments, sales are often part of the natural selling cycle. However, even retailers can undermine themselves when sales start earlier and earlier each year. Once customers learn to expect early discounts, the window for selling products at full price begins to shrink. Customers simply wait for the next sale.
Discounting Professional Services
For the purpose of this article, let’s focus on year-round professional services like those offered at Tingalls Graphic Design.
We offer web design, print design, logo design, graphic design, and copywriting services — to name a few — at a fair price. Our pricing stays consistent year-round, and we typically do not offer discounts.
Occasionally we hear about the “deals” people can get through companies like 99Designs, which essentially operate as a creative discount marketplace.
While using services like this might save money in the short term, it’s worth asking a few important questions about the long-term results.
Is the design unique, engaging, and representative of the company it was created for?
Does it inspire trust or confidence?
Will it help convince customers that the business behind it is a strong and credible brand?
And perhaps most importantly — will it stand the test of time?
You Get What You Pay For
Most people have heard the saying: you get what you pay for. A cheaper design may seem like a good deal at first, but it doesn’t always serve the business well in the long run.
Think of it like buying batteries. You could buy a pack for 99¢ at the dollar store, but they won’t last very long. Or you could spend a little more on rechargeable batteries and potentially never need to buy them again.
The same concept often applies to design quality.
The Impact on the Creative Industry
There’s also a bigger-picture issue to consider. Designers, writers, musicians, contractors, and other professionals need time to do their best work. When professionals are forced to compete primarily on price, the model becomes difficult to sustain.
Something has to give — and usually it’s the quality of the work, which becomes rushed in order to keep up with the low pricing.
Focus on Value, Not Price
If you’re a fellow creative professional, think carefully before lowering your prices to compete with discount design marketplaces.
Instead, focus on delivering excellent work and building strong relationships with your clients. When people see the value in what you provide, they are often willing to pay a fair price.
Once customers begin to expect extremely low prices, it becomes harder and harder to maintain a healthy business that can continue to grow.
Looking for Quality Design?
If you’re a business looking for design services, take a look at what a local firm like Tingalls Graphic Design can offer that you won’t find at a discount design house. If you’re unsure about the differences, feel free to contact us to set up a complimentary graphic design intake meeting. We’ll discuss your needs, your business goals, and how we can help support your success.
