Why discounts cost more than they look
A discount comes off your profit, not your price. With a 75% margin, a 15% discount cuts your profit per job by 20% — so you need 25% more work to earn the same.
Extra work needed = margin ÷ (margin − discount) − 1.
Better alternatives to discounting
- Offer a smaller package at a lower price.
- Trade the discount for something valuable: prepayment, a testimonial, a case study or a longer contract.