Discounting is the Red Bull hit of the print industry. It feels amazing at the start, it gives this month’s sale wings, but the crash comes later.
That’s means thinner margins, weaker positioning, and a business that’s worth less than it should be. And in print, where margins are already tight,
that is lethal.
Let’s be blunt. Most small printing businesses are not enjoying 40% net profits. They’re maybe operating on 10 to 15%. So, when you casually throw out a 10% discount to “get it over the line”, you are not winning sales, you’re losing profit.
Have a look at the
Discount Insanity Checklist. If your margin is 25% and you give a 10% discount, then you need to sell
67% MORE just to make the same profit. Look what happens if you’re talked into a 20% discount,
400% more.Every single penny of that discount comes straight off the bottom line. Paper costs don’t fall, click charges don’t shrink, your ink doesn’t get cheaper, and wages don’t reduce either. The only thing that moves is your profit…
downwards.Now have a look at “
The Crazy Label Company” and you’ll see how discounts can kill margin AND operational capacity.
And once you discount once, you’ve trained the customer. So, for those thinking; “I’ll discount to win the business”, it rarely works.
In today’s print market, with online trade printers, and a price comparison culture, discounting feels like a defensive move. A way to survive in the “red ocean” of commoditised print work.
But in reality, it reinforces the very commoditisation you’re trying to escape. You are telling the buyer that your work is interchangeable and your price is flexible.
You are signalling weakness.Worse still, discounting damages perceived value. In print, where clients often don’t fully understand the technical craft, your pricing is part of your positioning. If you drop it quickly, the unspoken message is: “There was margin to spare. I was overcharging you.”
Instead of discounting, print businesses need to
shift the conversation.The first alternative rather than reducing price,
is to add value. If I ask for £40 discount, that full £40 comes out your pocket, but if you give me £40 of flyers, that “cost” to you far less. Same value to me, different cost to you.
Next, stop selling the FEATURE and sell the
BENEFITS. Sell outcomes not technical names. What am I looking for? 5000 A5 leaflets on 130gsm gloss for £99 or 5000 leads for less that 2p each. Get the idea? Don’t sell what print is,
sell what print does.Third, build structured pricing. Good / Better / Best options. Let the client self-select. Often, they will trade up when they see the contrast. This also reframes the decision away from “WILL I buy” to “WHAT will I buy”.
Fourth, be confident enough to walk away. Not every job is worth it. Work that only makes sense at a discounted rate is often the work that causes production stress, cashflow pressure and zero loyalty. You end up busy but not profitable.
Finally, remember the compounding effect. A 5% price
increase can dramatically lift net profit. A 10% discount can destroy it. Because profit sits at the end of the chain, small movements in price have disproportionate impact.
In a market under pressure from digital alternatives, automation and rising costs, the print businesses that thrive will
not be the cheapest. They will be the clearest on value, the strongest on positioning and the most disciplined on margin.
Protect your price. Protect your margin. Protect your future.
So, if you ARE going to discount, be AWARE of the real bottom line impact.
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