032: The Discount Hangover: Feels Good Now, Hurts Later

Too many agencies think discounting is good customer service. They're missing the bigger picture. Every time you slash your prices to "make a deal work," you're not just losing money, you're systematically undermining your own value proposition and teaching clients that your original pricing was negotiable all along. This isn't about being difficult; it's about running a business that respects its own expertise.Melissa and Meredith break down the brutal math behind discounting and why that "harmless" 20% discount means you need to double your volume just to hit the same profit levels. But the real impact isn't financial—it's psychological. When you discount, you're essentially signaling that your work isn't worth what you initially charged, and clients pick up on that uncertainty faster than you think.The agency world has normalized this race to the bottom, but smart agencies are doing something different. Instead of cutting prices, they're adding value, restructuring payment plans, and positioning themselves as premium partners who stand behind their pricing. While everyone else fights for scraps with discount strategies, the agencies who refuse to play that game are attracting clients who actually want to invest in results.If you've ever wondered why clients keep pushing for lower prices, question your expertise, or treat your proposals like starting points for negotiation, this episode will show you exactly how discounting culture created those problems, and what to do instead.If you've ever wondered...• How much profit am I losing due to “small” discounts?• What message am I sending clients when I lower my rates?• What would change if I stopped slashing prices and started adding value?...this one's for you.This episode is brought to you by:Metricool | Get 30 days free on any Premium plan at https://metricool.com/darlings with code DARLINGSChapters:(00:00:00) The Real Cost of Being "Flexible" With Pricing (00:07:08) Why Discounting Trains Clients to Delay and Negotiate (00:13:56) The Math That'll Make You Stop Discounting Forever (00:18:47) Profit Margin Erosion and Brand Perception Damage (00:22:21) Smart Alternatives to Slashing Your Prices (00:27:04) Payment Plans vs Price Cuts (00:34:00) Standing Your Ground Without Losing Good ClientsWant To Dive Deeper On These Topics?• Apply to join our exclusive Agency Darlings Slack Community: agencydarlings.com/community • Join our agency advice column: agencydarlings.myflodesk.com/signupConnect with Melissa & Meredith:• Waverly Ave: waverlyave.com• Instagram: instagram.com/waverlyave.co • Le

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