Why I Offer Early Bird Pricing And You Should Too
I hate discounting. I think it’s detrimental to businesses, de-values your product and your message and trains your customers to buy at a reduced rate, which in the long-term does some serious damage to your margins. In fact, I spoke about the importance of avoiding sugar growth and not discounting in this podcast episode.
However, I do recognise the positive impacts of incentivising sales which is why I offer early-bird pricing and I think you should too.
Here are four reasons why I offer early bird pricing and you should too:
Early bird pricing tests if people are willing to buy what you are selling
The first reason to offer early-bird pricing is to test out whether people will buy what you are selling. There are few things more heart-breaking in business than pouring your time, money and soul into creating something, putting it out into the big wide world and then no-one buys it.
By putting together a simple early bird sales page and pre-selling the concept you’ll know how much demand there really is for what you’re selling. I’ve seen this work well for both product and service-based businesses.
For a new product based business, you might get a product sample or an image mocked up of what your product will look like, create a marketing campaign around a limited edition run, and start pre-sales before you invest in physically producing it.
For a service-based business such as my own, I pre-sold my group coaching spots at an early-bird price to my mailing list. The take up for the course demonstrated there was a need for it. This meant I could tailor my time and budget accordingly.
It rewards your existing audience
Another great reason to offer early-bird pricing is to reward your existing audience and customers.
The first 6 people to sign up with my early-bird pricing offer for my Group Mastermind Programme, had all bought from me before or been on my mailing list for over 6 months. Offering an early-bird price incentive is a great way to reward repeat purchasing and support from your community.
It increases urgency
It can be tempting to offer a ‘percentage off’ discount to increase urgency and get some quick cash into your business. However, I truly believe this devalues your offering. An early-bird price can deliver the same desired effect in a much more positive way as it creates an air of exclusivity, especially if there are only a limited number of what you’re selling.
It improves your cash-flow
By offering an early-bird price you can pre-sell your product, service, event or workshop without needing to invest in production costs first. I’ve seen this happen time and again with business owners, investing heavily into large (or even small) runs of product only to have spent all of their budget on production and left none for marketing and reaching customers. The same is true for service-based business owners or those running events and workshops.
Keep things lean by incentivising an early-bird sale before you commit to hiring venues or booking speakers. That way you’ll have the cash up-front enabling you to keep your cash-flow healthy.
Let Us Know!
Do you offer early-bird pricing for your products and services? As a customer, do you find yourself incentivised by early-bird pricing? Let me know over in our Facebook Community of entrepreneurs.