Don't Discount, Add Value

In a recent five-page special section titled, “Strategies for Survival,” the Wall Street Journal compiled valuable tips from thriving small business owners to help businesses get creative to financially stay afloat. One story I found especially compelling was about Pittsburgh-based advertising firm, Smith Brothers Agency. While advertising has been suffering as a result of both the global recession and growing pains from becoming relevant in new media, Smith Brothers experienced a 30% revenue growth in 2008.

One of the ways the privately owned-firm has kept business development healthy in these tough times is by offering performance-based pricing instead of discounting their service and offering extra services or promotions for increased customer affordability.

According to the article titled, “Smart Ways to Cut Prices,” Smith Brothers gets paid only if a client’s campaign goals are met or exceeded. This is a bold move, but in an industry with little overhead, it’s a good alternative to discounting, while providing a rare service and streamlining revenue.For other alternatives to discounting, click here to read NY Report contributing editor Craig James’ suggestions.