Discounts are the Enemy in a Recession
I’ve been around long enough to have seen several cycles of the economy through the course of a few decades. That includes the subprime mortgage crisis as I graduated college and the recession we experienced at the start of the COVID-19 pandemic. The baseline of my advice is the same no matter the circumstances, your industry, or even the size of your business. However, I tend to write these posts for businesses without the budget to bring on expensive consulting firms, although I would bet the message is the same at it’s core.
When economic forecasts look stormy, the impulse to panic and slash your prices is completely understandable. But for a small business built on quality, that’s like burning your own field for temporary warmth. When you discount your price, you permanently signal to the world that your product or service is worth less, and when the economy recovers, those bargain hunters will be the first to leave you for the competition. Consider a different approach: invest every effort into making your current price feel like a massive value—not through temporary sales, but through absolute certainty and trust. The goal is to build a service so reliable and beneficial that your customers would not want to buy from anyone else, no matter the price.
Review your operational efficiency and look past what you can’t control, starting with the actual process of how you deliver your work. Be on the lookout for any slow steps, confusing moments, or time. Every time you or your customer hits friction, it costs time, energy, and confidence. By cleaning up your internal processes—whether it's by organizing how you manage quotes or by batching routine tasks like email to focus on core work—you free up valuable capital. This isn't about cost-cutting; it's smart reinvestment. Instead of hiring more staff to manage chaos, you can redirect that saved money into crucial, specialized tools or capabilities—perhaps upgrading your equipment to attract new, high-end clients and boost retention.
This focus on efficiency allows you to build a wall of predictability around your business. In uncertain times, your client is grappling with their own budget worries, and the convenience of a predictable partner is a huge non-monetary value. Transitioning from short-term sales to structured retainer agreements or service bundles gives your clients budget certainty and guarantees them access to your quality when they need it most. For your business, this recurring, stable revenue stream provides the foundation you need to continually enhance your offering and ensure you are positioned not just to survive the downturn, but to emerge with a superior product and a loyal client base that is ready to grow with you.
Our studio helps businesses evolve and grow without sacrificing integrity in the digital age. If you’re curious about what this could mean for your your organization, book a free consult on our home page or reach out to our studio manager at hello@boldtype.is.
You got this!
Noelle ✨
