Discounts and Your Photo Booth Business
Do you own a photo booth business and unsure whether or not to give into offering discounts? Don’t worry, you are not alone. Many of us have been in that position where we get lured into the idea of building up our client list through slashing down the prices of our services. Not to mention that customers nowadays are fully equipped with the right technologies and platforms that help them know just how much your competition’s rates are. Thus, encouraging you more to give them a lower photobooth rental price. But, should you?
In this article, we will discuss how discounts affect your photo booth business. Is it really helping you? Or, is it hurting your business? Is it really a good idea to be offering discounts and giving into your customer’s negotiations? Well, find out by continue reading below.
Photo Booth as a Marketing Tool for Your Corporate Event In Melbourne
Having a photo booth at your corporate event ensures that each of your clients and customers will have fun. It is the perfect addition to your party as it allows everybody to be entertained and encourage them to just enjoy. And, it is suitable for any age and gender. So, with it, you can have every attendee to participate and let loose. Guaranteed, even the shyest and the quietest person in the room will have a blast posing in front of the camera.
Aside from making sure everyone has a great time, a photo booth can also help you in marketing. How? Well, you can customize a photo booth to put your logo, brand, or even a custom photobooth backdrop and hashtag on each photo that will be taken and printed. This helps you market your brand by easily turning the people in your event as brand ambassadors.
Positive Effects of Discounts
In today’s time, cutting down your prices is considered as a strategic method. If you look at it from a marketing and sales standpoint, you can have more new customers by encouraging them to hire you through offering deals. This can be extremely helpful if the business is running a little slow.
Aside from attracting new customers, you can also encourage repeat transactions. For example, for any past customer who can refer a new client to you, he/she will receive a 20% off or 50% off on their next photo booth hire. This results in repeat clients and it is a great way to promote your business as your customers will be the one who advertises for you.
Lastly, discounts allow you to keep up with your competitors. If they are lowering their prices, you can offer discounts to match them. This will ensure that you are not out of the loop and that customers won’t set you aside.
Negative Effects of Discounts
Here’s the thing: discounts are not all that good for your business. For one, it sets a bad precedent. Because once you offer discounts, there is no going back. If your customer knows you are offering your services at a cheap price, they will expect the same the next time they hire you. On top of that, they will tell their friends and family that you give in easily and that you can indeed lower your rates.
How can this affect you? For one, you will be known as the king or queen of discounts – which you don’t want. As someone who’s running a business, you want to be known for your services and outputs, not for the discounts you are throwing around. Secondly, your customers will not likely purchase from you without a discount. Or, they will wait until you offer your discounts again. So, don’t fall into the trap where every time your customer hires your services, it’s at a lower rate. That is just bad for any business.
Giving discounts can also lower your client’s trust in you. See, you probably started pitching your services by saying it’s the “best” and stating your standard price. However, when your customer starts backing out, you throw your last card and offer a discount. We know you are just trying to save a sale but doing such sets you up for mistrust.
Another thing that you should think about before lowering your prices is loss of profit. Continuously offering discounts gives you little to no profit at all. So, to make enough money to go around for your business, you tend to do more events at lower costs. As a result, you rush and stress through each event. And even when you’re tired, you continue to book jobs because you need them to keep you out of the red line. Then, you will come to realize that all the time, effort, and work you have put into all these discounted jobs are not worth it.
Sure, discounts offer you some advantages. But, they are not enough to outweigh its disadvantages. If you’re just starting your photo booth business, it’s a common practice to offer discounts. But if you’re thinking about offering lower prices beyond your opening launch, better think again – and read through the disadvantages listed here one or two more times.
Now, to help you avoid giving discounts to your customers, there’s one rule to follow: believe in yourself – because the rest will follow. Once you trust your abilities, you start trusting your services and your prices. See, if you don’t see that you are worth the price you are offering, your customers won’t either.