Gifts Instead of Discounts
Many salon owners believe that offering discounts is the best way to attract and retain clients. But did you know that discounts can actually cost you money in the long run? Instead of lowering your prices, a smarter strategy is to offer small gifts. This not only increases your profit but also strengthens customer loyalty. In this blog, I’ll explain why giving away a free product is far more beneficial than constantly offering discounts.
The Problem with Discounts
Offering discounts may seem like a good idea, but it comes with several downsides:
1. It lowers your value – When you frequently offer discounts, customers will start expecting them and may delay booking services until there’s a sale. This reduces the perceived value of your treatments.
2. Less profit per treatment – Every euro (or dollar) you discount is money lost. For example, if you give a €10 discount on a €60 treatment, that €10 is gone completely.
3. You attract the wrong customers – Discounts often draw in bargain hunters who are not loyal and will only return if you offer another deal.
Gifting: A Smarter Strategy
Instead of giving discounts, add value by gifting a product. Let’s say you purchase an eyebrow pencil for €3.50, and its retail price is €12.95. Offering this pencil as a complimentary gift after a brow lift treatment has several advantages:
✔️ Clients perceive higher value – A gift feels like a special treat, while a discount is often expected. This enhances customer satisfaction.
✔️ You keep your full revenue – You’re still charging full price for your treatments, rather than cutting into your profits.
✔️ You boost additional sales – If the client loves the eyebrow pencil, they’re likely to buy it from you at the full retail price of €12.95 during their next visit.
✔️ You build customer loyalty – Clients appreciate the extra attention and are more likely to return.
Example: Discount vs. Gift
• Scenario 1: €10 Discount on a €60 Treatment
• Client pays €50
• You immediately lose €10 in profit
• No additional sales opportunity
• Scenario 2: Free Eyebrow Pencil (Cost €3.50, Retail Price €12.95)
• Client pays €60
• You only invest €3.50 in product cost
• High chance the client will purchase the pencil for €12.95 later
Conclusion
Stop offering discounts that eat into your profits and start giving thoughtful gifts instead. This strategy increases customer satisfaction while helping you earn more in the long run. You maintain your margins, create new sales opportunities, and build a loyal client base.
So next time you consider offering a discount, ask yourself: Do I want to lose money, or invest wisely in my clients? 💡💰
Do you offer discounts or gifts in your salon? Let us know in the comments! 👇
