As a business owner, offering special discounts can be a great way to attract customers and increase sales. However, it's important to be aware of the full cost of offering these discounts at predictable times throughout the year.

Many business owners are only aware of the first loss that occurs when they offer a discount: the actual amount of the discount, such as 20%. However, there's a second loss that many are unaware of, which can be much more costly to their business.

When you offer discounts at predictable times, you're training your customers to wait for these special offers. This means that they'll hold off purchasing until the deal is available. While this first loss is expected and manageable, the second loss can be much more detrimental to your business.

Some customers who would have purchased from you at the total retail price may decide to buy from a competitor instead. This happens because you've trained them to believe they'd be losing out if they purchased from you at the total price. They may decide to buy from a competitor who offers a similar product or service, even if the discount is not as good as yours because they can have it now without the pain of losing money.

The cost of losing customers this way can be significant, and many business owners are unaware that it's happening to them. Losing customers this way affects your short-term, medium-term, and long-term sales and revenue.

Ideally, you should avoid discounting anything unless you have time-sensitive inventory going out of date or inventory items depreciating in value. Instead of lowering the price, focus on increasing the value of your product or service and making it irresistible to potential customers. Additionally, focus on creating effective marketing strategies that can help you sell your product or service all year long without the need for special discounts.

In summary, offering special discounts can be a great way to attract customers and increase sales, but it's important to be aware of the full cost. By understanding both types of losses that come with offering discounts, you can make informed decisions that benefit your business in the long run.