The Truth About Discounts
Let me tell you a story. Yesterday, I went and bought something. I’m—you know—I suppose you could say I placed an order on Facebook Marketplace and went to pick it up. I said to the bloke I was picking up the item from, “I’ve bought from you before.” And he said, “Oh, hang on a second,” then proceeded to give me $10.
Now, you might think, “Well, that’s a great idea! He gave me a discount.” But the truth is, he just robbed himself. Let me explain. For most businesses, if you imagine the total number of sales you make, your cost is usually about this. The difference between total sales and cost isn’t that high—that’s your profit margin, isn’t it? The problem with giving a discount is that you’re squeezing that profit margin, sometimes even savaging it. So, if you have a practice and you’re offering discounts because it’s a Tuesday, or because someone is elderly, or they have a health care card—honestly, my advice is: don’t do it. You’re robbing yourself of that profit. Now, I’m not talking about having offers for new patients—that’s different. I’d strongly recommend a new patient package, maybe bundling some extras together. That makes sense because new patients usually stay for years and have multiple visits. So bundling? No problem. But discounting? Just leave it alone. See you next time!