Discounting is a Disease!

At the recent Vicenza Trade Fair, I was speaking with a principal of a leading Italian jewelry brand. The subject of discounting came up, and yielded a very interesting conversation.

The principal of the designer brand has resigned himself to the fact that his products will be discounted by department stores and jewelers who compete with each other on the basis of price. What good is it to have a brand, I said, unless you can get the margin you deserve for having built your brand over the years.

Discounting is a cancer in the industry. I know – everyone does it. But does that mean you have to do it, too? The long-term negative effects of discounting cannot be over-stated. Your customers will begin to expect a discount on everything, and also assume that your pricing may have been too high in the first place. Discounting takes money right out of your pocket.

Your pricing – whether at the supplier or retail level – is based on a fair and reasonable markup, one that is necessary for you to run a profitable business. If you really believe that, by implementing a store-wide policy of no discounting, you will set a new and positive tone for both your employees and your customers. I recommend removing the disease of discounting today.

Are You a Leader or a Manager?

Here are some words that distinguish leaders from managers….

Leaders                        Managers

– Lead                           – Manage

– Create                        – Refine

– Plan                            – Budget… [more]

Here are a few Business and Life Tips to think about:

Business Tips:

• An entrepreneur is always thinking of how he/she can fill a need or do things in ways that have never been done before. What can you do?
• People who fail to acknowledge opportunities are either fearful of outcomes or ignorant of the potential.
• When in doubt about hiring someone, don’t. Test the person. Do background checks. Call references. Don’t take the risk.

Life Tips:

• It is better to do something and be wrong, than to do nothing. Be willing to be wrong, and don’t be afraid to admit it.
• People want to be heard. As long as you are open to hearing them, they can be a great source of information, advice, and strategy.
• To come along side a friend in need may be the best use of your day. True friendship involves the sacrifice of your precious time.

Tags: Advice, Business, Business Development, Business Tips, Leaders, Leadership, Management, Managers, Reputation, Success