I remember when I first started my practice, I didn’t know a thing about how to get business in my door. Someone
recommended that I should discount my fees to show appreciation and to incentivize referrals. So I did just that. I
showed what the amount was for the service and then I put my discount, whether it was a “new client discount”, a
“referral discount”, or my all-time favorite “multiple service discount”. And I was getting business. I was getting
referrals. But was this a good idea? Not really.
Offering discounts seemed to be the logical choice to help bring new business into my practice but in reality, it hindered
my growth. Here are some of the reasons as why discounts are not the best solution for your practice:
1. It focuses on price. Price became the primary focus instead of the service I was providing. If our only advantage is
our price then our business is in trouble.
2. Wrong Impression. Every time we offer a discount we devalue our business. Our clients will get the impression that
the services we provide are not worth paying full price for.
3. Negative impact on quality. Instead of being known as the firm that offers an amazing service, we are being known
as the firm that offers “cheap pricing” or my favorite “reasonable pricing”.
There are other ways we can thank our clients for the referrals or loyalty that are more thoughtful. For example, I sent a
gift card for dinner for two at Perry’s Steak House to my client who has referred quite a bit of business to me. Why is this
better? Instead of my referral source saying “Monika pricing is reasonable”, I am referred based more on my expertise
Ask yourselves this question. Do you want to be known as the discount store of tax services? Or do you want to be
known as the high-end of tax services?