šDiscounts Destroy!
Cutting prices means killing profits!
The Big Idea: Discounts destroy:
Your brand
Your profits
Your customer loyalty
Carnival is acting fast here to fix the challenge that discounting has created for their bottom line.
Travel and hospitality continue to struggle as inflation is an issue, energy costs impact some buyers, and savings have been exhausted.
My take: I wrote the OG āDiscounts Are For Dummies!ā post back in 2017. It has been translated into 6 languages now and fueled my ability to speak and work around the world.
I wouldnāt change a word.
I would add that instead of discounts, think about these options first:
Lower your prices if thatās what needs to be done. Admit the mistake, correct it, and communicate the new price.
Add value to the initial offer. You might have misread the market. That happens. Add some value to see if you can get people to the price point you need.
Focus on value not costs. You might just have a product or service that doesnāt work at the prices you need to charge. Look at the value your customer receives and deal with it accordingly.