I hate sales and discounts — at least for professionals and small businesses. When you lower prices, you’re basically training customers to wait for a lower price before buying– a bad habit.

There are many better ways to drum up business, especially during your slow season. Rather than simply offering discounts, John Jantsch of Duct Tape Marketing suggests thinking of some combination of the following offers:

• Exclusive and private members-only discount sale days
• Community-building events that include the entire family
• Early hours just for current customers, where they get first crack at the newest stuff
• Credits and/or discounts for referrals and passing out gift certificates
• Promotion with a non-profit partner that donates a portion of sales during an exclusive event (you can probably find a way to work this into one of the non-profit’s events).

This approach is much classier than simply lowering prices. First, as Jantsch points out, it rewards your good clients. Plus it motivates prospects to become clients, because they see they get lots of unique benefits when they do.

By the way, this approach isn’t only for retailers. It can work just as well for B2B and even service businesses. So — what are your plans for a summer promotion?

By the way, if you need some professional help writing the copy…

No marketer likes giving money back. But a solid, no-questions-asked refund policy is an essential selling tool, especially in our cynical times. It reduces buyer hesitation and increases sales. Master copywriter Bob Bly recently explained four things you should know about refunds.

• A refund request doesn’t mean your product is bad or the customer doesn’t like it. It’s more likely they just can’t use it. It’s not for them.
• Offering a refund doesn’t cost you money. It makes you money. The increased revenues and profits from a guarantee are much greater than any loss you suffer by issuing refunds.
• Longer guarantees are better than shorter guarantees. If you currently offer a 30-day guarantee, try a 60- or 90-day. The longer guarantee term invariably increases response rates and sales, Bly says, because it eliminates the concern many buyers have with a short guarantee.
• Generous guarantees sell better than miserly guarantees. The more unconditional the guarantee, the higher your response rates will be. Conditional guarantees (e.g., only if the product is returned “in saleable condition”) actually reduce orders.

Sure, a few unscrupulous people might take advantage of your refund policy. But it’s a mistake to assume that most of your customers are like that. I’ve found that people have a way of living up (or down) to your expectations of them. If you expect them to be crooked, they will. And vice versa.

So you can show how much better your product is. Saturn is launching a bold marketing initiative this summer. Dealers are bringing in a Toyota Camry and a Honda Accord, so car shoppers can test-drive the competition — right at the Saturn dealership.

“In that side-by-side comparison, we come out really well,” said GM’s Mark LaNeve.

Later this year, Chevrolet dealers will be doing the same thing. As those characters in the Guinness TV ads say, “Brilliant!” Reminds me of the old Pepsi Challenge.

Does your product or service flatten the competition in head-to-head competition? Could you set up an on-site comparison test of your own?

Harry Connick Jr. was on Imus in the Morning on MSNBC this morning (1/31/07), promoting his terrific new CD, Oh, My Nola – and not coincidentally, to plug his upcoming nationwide tour. A few days ago, the country group Big & Rich appeared on Imus. Why?

Why are top artists so willing to appear on TV and radio, even if it means getting up at the crack of dawn? For the exposure, of course. Playing a tune or two on the air is a “free sample” of their new CD. It’s just like the free taste you get at Baskin & Robbins or Starbucks.

Free samples are a proven way to introduce new products or services to existing fans, and hopefully attract lots of new ones. If they like the sample, who knows. They just might buy the whole package.

Does your business use free samples to introduce your products and services to new customers? If not, you’re missing an important sales channel.

In Guerrilla Marketing, Jay Conrad Levinson called sampling “the most effective marketing method available… assuming you have an excellent product or service.” (Free samples of junk, obviously, will only hurt you.)

The benefits are obvious:

• You introduce yourself to lots of potential new customers.
• The cost is low, especially compared to traditional advertising.
• It reduces the risk for the prospect. You’re no longer a stranger, an unknown quantity.
• You’re not perceived as a pushy salesperson “selling” something. Instead, you’re giving away something of value for free, so the interpersonal dynamic is dramatically different.
  They may even feel a sense of gratitude, that they “owe” you something and need to repay it.
• In the case of financial planners and other consultants, a free consultation allows you to show off your expertise, thus positioning you as an expert in your field — a nice position to be in!
• Even if it turns out the person receiving the free sample isn’t a potential customer, they’ll often mention you to a friend or colleague who is. And of course a referral from a trusted friend has more credibility and influence than a hundred sales calls.

How can your company use free samples to attract new customers?

Consider these proven methods. Could your company try something similar?

• Software makers frequently offer a 30-day free trial. Some high-end mattress companies offer a 90 “night” trial.
• Amazon lets you read excerpts of books and hear 30-second previews of songs from CDs.
• Oreck lets you use one of their vacuum cleaners in your home for 30 days. If you’re not satisfied, return it and pay nothing. They even pay the shipping. Confidence? I’ll say. It also predisposes the customer to have faith in your product.
• Proctor and Gamble and other merchandising giants have long introduced new detergents, toothpastes, etc. by distributing trial-sized free samples.
• Some carpet cleaning companies will clean one rug free, in hopes you’ll be pleased enough to hire them to do the rest of the house.
• Consultants of many stripes (including me) offer a free initial consultation to see if your need and their expertise are a good fit. In a similar vein, photographers, graphic designers and Web developers often display examples of their work on their Web sites to impress potential clients.
• Musicians, especially less-known artists, offer free downloads of new tunes.

If you have confidence in your product or service, why not figure out a way to let your customers try it at no cost?

What about you? Have you tried offering free samples? How well did it work out? Share your success stories (or warnings) in the comments or email me.