Full Transcript for Why Discounts Don't Work in Luxury

we were doing to our really to our positioning in the industry and in our market. 00:04:29.759 --> 00:04:35.199 Because we were doing that damage and we had a lot of hurdles to jump over once we decided we weren't doing that. 00:04:35.360 --> 00:04:39.839 But before we even established that, we heard from a client of ours. 00:04:40.000 --> 00:04:43.040 We were reaching out, we were doing this thing where, you know, we're you're following up. 00:04:43.120 --> 00:04:44.399 Hey, it's been a while, it's been a while. 00:04:44.480 --> 00:04:45.519 We still do that, by the way. 00:04:45.600 --> 00:04:46.720 I'm not afraid to do that. 00:04:46.879 --> 00:04:51.360 But we we were doing it back then, and we had reached out to someone and he said, Oh, I'm good. 00:04:51.439 --> 00:04:54.319 I'm actually just gonna wait till you run your next promo promotion. 00:04:54.560 --> 00:04:54.959 Uh oh. 00:04:55.199 --> 00:04:56.240 And that was all we needed to hear. 00:04:56.399 --> 00:05:02.879 And we thought we said, okay, this is an interesting behavior that we have trained, because we had trained it. 00:05:02.959 --> 00:05:04.879 You you are training your clients. 00:05:05.439 --> 00:05:09.680 Is this what we want our business to look like moving forward? 00:05:09.839 --> 00:05:14.639 Where our clients are smarter, they've wised up, they're waiting. 00:05:15.040 --> 00:05:23.839 And and it's been an evolution since that moment to where we sit today and the business that we run now. 00:05:24.000 --> 00:05:33.360 It's been it's been an evolution of figuring out because I don't necessarily think that um offering a better value is bad sometimes. 00:05:33.600 --> 00:05:39.680 It's not like I think that we run this business and you should never incentivize anybody to do anything ever. 00:05:39.920 --> 00:05:44.079 And there are ways to incentivize and offer value without discount, which we'll get to. 00:05:44.319 --> 00:06:03.120 And I think that that's been the that's been the where the evolution has come to is the understanding of value proposition is different than just knocking the price down or slapping a certain percentage off of this thing. 00:06:03.360 --> 00:06:14.720 There is a way to additionally incentivize or to or to uh steer the ship towards the outcome you're after that isn't just about slashing the price. 00:06:14.879 --> 00:06:20.959 I don't remember if we've shared any element of this on the podcast before or not, but this this I think sums it up perfectly. 00:06:21.199 --> 00:06:34.879 Um in 2012, JCPenney offered fair and square pricing strategy, which eliminated coupons, sales, and discounts in favor of just everyday low prices. 00:06:35.199 --> 00:06:44.720 That caused a catastrophic financial collapse that heavily damaged the company company and contributed to its long-term decline and subsequent bankruptcy and store reductions. 00:06:45.040 --> 00:06:58.240 So, what that is saying is that JCPenney said, enough of this inflating our prices only to offer coupons and sales to have people think that they're getting a good deal. 00:06:58.399 --> 00:07:04.000 We're just gonna come to the table with our best prices and the best deal without the coupons. 00:07:04.160 --> 00:07:09.279 Now nobody has to show up with anything, they can just show up and get this fair and square low price. 00:07:09.439 --> 00:07:24.240 And it caused a catastrophic collapse of this large company because discount people want to get a discount. 00:07:25.120 --> 00:07:30.000 And there are certain businesses out there that are designed for discount shoppers. 00:07:30.480 --> 00:07:34.639 And spoiler alert, discount shoppers are never gonna go pay full price for anything. 00:07:35.120 --> 00:07:37.279 You've seen those crazy couponing shows, right? 00:07:37.439 --> 00:07:45.360 Where somebody ends up with a zero dollar balance and 25 carts full of things and it's all like bottled water and canned goods. 00:07:45.839 --> 00:07:48.560 They're not buying what they want, they're buying what's on sale. 00:07:49.199 --> 00:07:52.720 Cheap clients are not what you want. 00:07:53.040 --> 00:07:59.839 And I know some of us have gotten into that headspace where we think we want to be something for everyone. 00:08:00.560 --> 00:08:12.480 And you may think that now, but when you're serious about growing your business and staying in it for the long term, you'll realize that cheap clients aren't the way to get there. 00:08:12.800 --> 00:08:17.120 And by offering discounts, all you're doing is you're bringing more cheap people through. 00:08:17.360 --> 00:08:25.120 And every once in a while you'll have a good person who uh is just happy to get a little bit of, you know, an money off. 00:08:25.360 --> 00:08:43.200 But for the most part, the influx in business you're feeling, first of all, it's it's costing you more because you're offering discounts and you're presumably not making as as strong of a margin, but you're growing this clientele who will be outraged if and when you stop catering to them. 00:08:44.000 --> 00:08:45.600 It's a lose-lose for you. 00:08:46.480 --> 00:08:48.960 Whether you realize it or not, it is. 00:08:49.519 --> 00:08:56.639 But I understand that it's good intentions that drive offering a special or offering a discount. 00:08:56.879 --> 00:08:59.840 It it's it's well-intentioned business owner. 00:09:00.000 --> 00:09:03.200 Well, let's just talk through what are the intentions. 00:09:03.360 --> 00:09:05.600 The intentions are I'm feeling slow. 00:09:05.759 --> 00:09:07.600 I want to generate some interest. 00:09:07.840 --> 00:09:13.679 The intentions are I have this great new thing that I'm trying out and I don't really know how to do all that well. 00:09:13.759 --> 00:09:18.159 Let's call it custom jeans, for example, just because that's an example that I think some of you can relate to. 00:09:18.399 --> 00:09:20.480 So let me offer it at 50% off. 00:09:20.559 --> 00:09:26.480 And while I get my C legs

under me and figure out how to measure and fit these things right, let me just offer it for 50% off. 00:09:26.639 --> 00:09:26.879 Okay. 00:09:26.960 --> 00:09:30.159 So we're gonna use those two examples and we're gonna talk through an alternative. 00:09:30.399 --> 00:09:37.200 Rather than offering a discount for those things, we're gonna share with you some things that we've done that have worked well. 00:09:37.360 --> 00:09:42.159 Uh, it does not drive just throngs of people banging our door. 00:09:42.639 --> 00:09:43.519 Well, that will never happen. 00:09:43.600 --> 00:09:53.600 And if your expectation is that some discount that you're gonna run or some sales, some special you're gonna run is gonna is gonna open up the floodgates of leads and clients, it will never happen. 00:09:53.919 --> 00:09:54.639 Sorry. 00:09:55.120 --> 00:09:57.279 Because you're not a volume business. 00:09:57.519 --> 00:09:59.120 You're a margin business. 00:09:59.440 --> 00:10:05.759 All of you listening to this, if you're a custom clotherier, you are in the you are in the margin business, you are not in the volume business. 00:10:05.919 --> 00:10:08.320 And it doesn't even really matter how many clients you have. 00:10:08.480 --> 00:10:11.039 Many of you who listen, I'm sure, have more clients than we do. 00:10:11.200 --> 00:10:11.600 Oh, yeah. 00:10:11.679 --> 00:10:19.919 We've been very upfront about the fact that we're what what's considered a win to us now is working actually with fewer people, all of whom are spending more, buying more items. 00:10:20.159 --> 00:10:26.399 So our numbers of actual number of clients have been on the decline for years. 00:10:26.639 --> 00:10:44.080 But but don't don't ever be confused and think for a minute that you are in that you are in the volume business and you need to exist operating off of slim margins and just work with more and more and more and more more so that you can earn your living. 00:10:44.399 --> 00:10:53.200 This business is designed unless unless you're a chain store doing it really cheap, really fast with you know like an Indochino or a suit supply. 00:10:53.519 --> 00:10:54.240 Men's warehouse. 00:10:54.320 --> 00:10:59.039 I mean, those are the types of businesses in our industry that are volume driven. 00:10:59.519 --> 00:11:00.480 We are we are not that. 00:11:00.720 --> 00:11:01.200 You are not that. 00:11:01.440 --> 00:11:04.000 You are not a volume custom clothier. 00:11:04.320 --> 00:11:06.480 You are a margin custom clothier. 00:11:06.799 --> 00:11:19.600 So I just wanted to throw that out there because I I think sometimes people expect that a discount or a special is going to just generate huge uh numbers of people. 00:11:19.919 --> 00:11:22.000 And it's not gonna happen like that. 00:11:22.240 --> 00:11:22.960 And that's good. 00:11:23.440 --> 00:11:24.799 Unless you start giving everything away for free. 00:11:24.960 --> 00:11:25.840 Self-preservation. 00:11:25.919 --> 00:11:31.120 I mean, it's

it's saving you from putting yourself in a position that you can't afford to be in. 00:11:31.360 --> 00:11:33.360 What I mean, we talk about this so often. 00:11:33.600 --> 00:11:40.720 What if, what if your marketing works, but you don't have the structure of your business figured out yet? 00:11:40.799 --> 00:11:47.120 If your margins suck, if your marketing works but your margins aren't strong, you're putting yourself in a really bad situation. 00:11:47.600 --> 00:11:49.679 And that's what we're talking about with these discounts. 00:11:49.840 --> 00:12:01.519 So instead of discounting, what what can you do if you're feeling that slow and you want to generate more interest and you you're feeling like you gotta make some money, but what do you do? 00:12:01.679 --> 00:12:04.799 Because the go-to would be to offer some sort of a promo or a discount. 00:12:04.960 --> 00:12:09.919 So let's say you're in that position, you're trying to generate some interest, some urgency, some money, right? 00:12:10.559 --> 00:12:18.559 Instead of saying 25% off or 31% off until October 31st for the Halloween special. 00:12:18.720 --> 00:12:20.480 It's so good, it's spooky. 00:12:20.639 --> 00:12:22.159 Ooh, spooky. 00:12:22.480 --> 00:12:31.360 Instead of doing something like that, what about being intentional with some of your decent clients about something you know they need? 00:12:31.600 --> 00:12:38.080 I've been doing this for the last four months with overcoats. 00:12:38.720 --> 00:12:41.360 You can do it with overcoats too, starting now. 00:12:41.519 --> 00:12:47.519 Uh, if you're in a market like, you know, Scottsdale or Miami, maybe not so overcoats, but you know, whatever. 00:12:48.159 --> 00:12:50.559 Trench coats, jacket shirts, whatever. 00:12:50.799 --> 00:12:52.879 So you have these clients who've bought from you. 00:12:53.039 --> 00:12:58.399 My guess would be that they haven't bought overcoats or something to that effect. 00:12:58.799 --> 00:13:00.240 Reach out to them. 00:13:00.480 --> 00:13:07.440 I would just I just sent a couple of template emails to our LCC group, which included photos we had taken. 00:13:07.679 --> 00:13:14.960 And uh it's basically, you know, it's an email template that just kind of explains, hey, we've never done this with for you before. 00:13:15.120 --> 00:13:16.799 Now is the time to get it going. 00:13:16.960 --> 00:13:21.440 At this point, by the time you're listening, we're actually kind of, you know, maybe even a little. 00:13:21.519 --> 00:13:24.559 I'm not gonna say too late because it's not too late to do this. 00:13:24.879 --> 00:13:30.879 But the reason we had such such success doing this last four months is we were kind of ahead of the game. 00:13:31.120 --> 00:13:35.600 I was selling this stuff in July to prepare people for the upcoming months. 00:13:35.759 --> 00:13:42.080 So by the time you're listening to this, I mean you probably still have a couple strong months of cold ahead of you, and that's what you can use. 00:13:42.159 --> 00:13:45.039 But basically, hey, you don't have one of these. 00:13:45.360 --> 00:13:48.639 Here are a couple of pictures of some that look good. 00:13:48.879 --> 00:13:51.840 Here are a couple qualities, here are the price points. 00:13:52.080 --> 00:13:54.399 Let me know if you uh want to move forward. 00:13:54.559 --> 00:14:02.320 I would strongly recommend we get this order going at some point this next week so that you can have it for however many months. 00:14:02.559 --> 00:14:19.200 It's a much more targeted approach, a much more fine-tuned approach than the broad, you know, the shotgun shooting of running a promotion that probably won't feel all that meaningful anyway. 00:14:19.679 --> 00:14:20.720 It works a lot better. 00:14:20.879 --> 00:14:31.679 Think about it in terms of like you walk outside and your driveway is disgusting and you grab your hose and you turn it on to the spray setting, it's never going to get clean that way. 00:14:31.840 --> 00:14:39.759 You need a power washer, something that can focus and actually remove things and actually get a specific outcome accomplished. 00:14:40.080 --> 00:14:48.799 My guess would be if you're wanting to establish urgency and you're wanting to establish interest, it's because you're wanting to make some money. 00:14:49.039 --> 00:15:00.080 So why not take a direct, targeted approach and hone in on the people who you know will could actually respond to something like this in a positive way. 00:15:00.240 --> 00:15:09.120 And it doesn't have to be overcoats, it can be whatever you want, but targeting a specific group of people or select number of people with something specific that is intentional. 00:15:09.279 --> 00:15:12.879 You've thought about it, you know what their needs are, you're thinking about them. 00:15:13.200 --> 00:15:16.399 And to them, you meeting a need is valuable enough. 00:15:16.559 --> 00:15:17.600 They don't need a discount. 00:15:17.679 --> 00:15:22.879 You'll notice I didn't say anything about a discount or a special or special rate on this or whatever. 00:15:23.120 --> 00:15:24.480 It's just, it is what it is. 00:15:24.639 --> 00:15:25.200 Here's your need. 00:15:25.360 --> 00:15:26.000 I can meet it. 00:15:26.080 --> 00:15:26.879 We should meet it now. 00:15:27.039 --> 00:15:27.519 What do you think? 00:15:27.759 --> 00:15:28.879 Here's another thing. 00:15:28.960 --> 00:15:40.080 Speaking of value add, another way that you could approach this, let's just use, let's just say, for example, that you're selling, you would sell an overcoat to one of your good clients for 3,000 bucks. 00:15:40.320 --> 00:15:45.600 You could also, in that same email, tell that client, let's just say the client's name is Chris. 00:15:46.159 --> 00:15:47.919 I don't know why I said the name. 00:15:48.080 --> 00:15:48.960 It doesn't matter. 00:15:49.200 --> 00:15:56.799 You could also tell that client in the email, oh, and by the way, I just got a new shirt line in

that does or doesn't have to be true. 00:15:56.960 --> 00:16:00.879 I just got a new shirt line in that I'm trying, I'm starting to try to make some things. 00:16:01.039 --> 00:16:05.279 If you buy this overcoat, I'll throw in a complimentary shirt for you too. 00:16:05.600 --> 00:16:06.559 Value add. 00:16:06.960 --> 00:16:12.879 You're not saying, I'm gonna, I'm gonna slash the price of this overcoat by the equivalent of a shirt. 00:16:13.600 --> 00:16:18.159 It's essentially the same thing because it's coming out of the same bank account. 00:16:18.480 --> 00:16:30.720 But instead of Chris feeling like it's maybe it's a good thing I said the name, instead of Chris feeling like he's getting a discount, he's feeling like you're adding value to his purchase. 00:16:30.879 --> 00:16:34.080 There's something very psychologically different about those two things. 00:16:34.159 --> 00:16:37.679 And I get that they're not that different, but they are perceived differently. 00:16:37.919 --> 00:16:50.720 And and shot in the dark, my guess would be Chris, if he's the right type of person, would rather have a complimentary shirt from a$4,000 purchase, say$4,000 or$3,000. 00:16:50.879 --> 00:17:05.440 Three from a$3,000 purchase than a 20% off of his purchase or 10% off of his purchase, whatever the discount is that you would run. 00:17:05.680 --> 00:17:09.680 Chris would rather have something additional that he knows he's gonna wear and knows he's gonna use. 00:17:09.839 --> 00:17:15.279 And it's not gonna cost you 20% of his grand total to do a one free shirt for him, but he values it more. 00:17:15.519 --> 00:17:16.000 Exactly. 00:17:16.240 --> 00:17:17.200 Isn't that crazy? 00:17:17.759 --> 00:17:18.720 Exactly. 00:17:19.279 --> 00:17:20.319 So there's one example. 00:17:20.400 --> 00:17:22.640 If you're trying to drum up some business, try that. 00:17:22.799 --> 00:17:25.920 It's it only needs to work once. 00:17:26.240 --> 00:17:27.920 It doesn't need to work 10 times. 00:17:28.160 --> 00:17:31.759 It only needs to work once before you're starting to feel, okay, yeah, all right, that's great. 00:17:31.839 --> 00:17:32.720 That's a relief. 00:17:32.960 --> 00:17:37.359 But uh taking a more targeted approach because we are not a volume business. 00:17:37.519 --> 00:17:45.519 We don't have millions of people in our in our email database that we can just send some blast to and hope the orders roll in. 00:17:45.920 --> 00:17:50.559 We have to be targeted because we are a targeted business because we're a we're a margin business. 00:17:50.799 --> 00:17:54.880 Okay, so you sort of briefly mentioned this throwing in a shirt. 00:17:55.119 --> 00:18:02.240 Let's say the second scenario where you're trying something new, like the custom jeans or knitwear or whatever, new shirt line, whatever it is, shoes. 00:18:02.559 --> 00:18:09.680 You're trying something new and you feel weird charging full price because you should. 00:18:09.920 --> 00:18:15.599 If you don't feel weird about charging full price for the first time you're gonna do something, you should rethink that. 00:18:15.839 --> 00:18:19.680 You wanna make sure you're good at what you're doing before you start doing that. 00:18:19.839 --> 00:18:26.400 So I would recommend if you just are picking this up and you've never done it before, try this. 00:18:27.200 --> 00:18:29.039 Incentivize with it. 00:18:29.440 --> 00:18:33.599 So a f we've done this before many times. 00:18:34.640 --> 00:18:39.519 Free custom jeans with fill in the blank. 00:18:39.680 --> 00:18:46.559 And there was a time seven, eight maybe years ago when that was an email that got sent out to people. 00:18:46.799 --> 00:18:48.559 Free custom jeans with the purchase. 00:18:48.640 --> 00:18:51.440 I think at the time we were doing the purchase of a premiere suit. 00:18:51.519 --> 00:18:52.400 It was right around this time year. 00:18:52.799 --> 00:18:54.400 Premium suit from a premiere mill. 00:18:54.720 --> 00:18:55.519 Yeah, and we listed them. 00:18:55.599 --> 00:18:57.440 It was like Dormet, SCABAL, whatever. 00:18:57.680 --> 00:19:10.480 So they had to buy that level because we knew they were gonna like it, and we knew that we'd be able to make more on that, which would then, you know, offset some of the costs of doing these free genes because we didn't know what the hell we were doing. 00:19:10.559 --> 00:19:12.079 We didn't know how they were gonna turn out. 00:19:12.240 --> 00:19:16.400 And our experience is that it's a lot easier if something doesn't turn out if it was free. 00:19:17.039 --> 00:19:18.400 So that's what we did. 00:19:18.559 --> 00:19:21.279 Fortunately, we didn't really have to remake any genes. 00:19:21.519 --> 00:19:26.720 And on the flip side, some people turned into genes buyers. 00:19:26.880 --> 00:19:28.079 We got genes buyers. 00:19:28.160 --> 00:19:36.160 We also, everyone that came in and did that no longer buys anything under that premier mill that they came in and bought at that point. 00:19:36.319 --> 00:19:42.799 So it's it's twofold approaching discounts or value proposition like this. 00:19:43.039 --> 00:19:50.559 Because yes, it's for that short-term swipe, that short-term sale, that money hitting your bank account tomorrow. 00:19:50.720 --> 00:19:51.839 It's for that. 00:19:52.400 --> 00:19:56.559 But it's also for the long term of your business. 00:19:56.799 --> 00:20:04.640 And getting your people who were at one point in time buying lower end, who now bought higher end, but the and and now they have a pair of jeans that they really like. 00:20:04.799 --> 00:20:09.200 Now they're a high-end suit buyer and they buy jeans from you. 00:20:09.440 --> 00:20:19.279 I just want to talk a little bit about how this looks for us now, because like I said, that that was at, you know, that many years ago, it was an email blast that got sent out to select people. 00:20:19.440 --> 00:20:27.119 And we had that was probably it's not, it's not really fair, I

don't think, to call it a promotion because it wasn't, but technically it was. 00:20:27.200 --> 00:20:27.920 In my mind, it was. 00:20:28.079 --> 00:20:28.240 Yeah. 00:20:28.400 --> 00:20:32.480 So that was the promotion I think that we had the most success with was that one. 00:20:33.200 --> 00:20:36.799 As opposed to any of the other many, many promotions that we ran. 00:20:37.039 --> 00:20:40.319 The way we do it now is not like that at all. 00:20:40.640 --> 00:20:46.960 We save those types of experiments for people who we're already working with who deserve it. 00:20:47.200 --> 00:20:56.640 Great clients who are either coming back, they're repeat buyers, or someone's working with us for the first time ever, and they're just doing the thing, they're spending a bunch of money, they're buying a bunch of stuff. 00:20:56.799 --> 00:20:59.680 Hey, you know, like, let's throw this thing in, see how it works. 00:20:59.839 --> 00:21:01.039 We'll see if you like it. 00:21:01.279 --> 00:21:02.640 That's how we do it now. 00:21:02.799 --> 00:21:05.839 We don't need to use it to drum up business, but we still do that. 00:21:06.000 --> 00:21:10.720 We still, you know, we we switched over to the custom-made genes company. 00:21:10.880 --> 00:21:20.880 And when we did that a couple of years ago, we did the same exact thing where we tried them out on a number of people just to see how it worked for free for them. 00:21:21.039 --> 00:21:26.640 Any anytime we felt like they would value it, we tossed it in. 00:21:26.960 --> 00:21:28.480 And they did value it. 00:21:28.559 --> 00:21:30.240 Or just thought of someone else I need to reach out to. 00:21:30.319 --> 00:21:31.519 So put them in my little note. 00:21:31.920 --> 00:21:32.880 Go ahead and put it in the note. 00:21:32.960 --> 00:21:33.200 Yeah. 00:21:33.440 --> 00:21:35.440 We're running a very high-tech operation here. 00:21:35.519 --> 00:21:37.680 When we think of somebody we need to reach out to, because it's been a while. 00:21:38.000 --> 00:21:38.480 Well, you know what? 00:21:39.119 --> 00:21:39.680 You know what, guys? 00:21:39.920 --> 00:21:41.359 It doesn't have to be more complicated than that. 00:21:41.519 --> 00:21:46.720 I feel so many people ask, What's the what's the system you use for tracking all of your like literally? 00:21:46.799 --> 00:21:48.480 I just think of it sometimes. 00:21:48.720 --> 00:21:49.039 Yeah. 00:21:49.200 --> 00:21:50.240 I was in the airport. 00:21:50.640 --> 00:21:51.839 Again, we're not a volume business. 00:21:52.079 --> 00:21:53.200 I was in the airport the other day. 00:21:53.279 --> 00:21:55.920 I remembered at one point running into a client at the airport. 00:21:56.079 --> 00:21:57.039 I reached out to him. 00:21:57.200 --> 00:22:01.359 He came in, I he responded and came in and Bought clothes this summer. 00:22:01.599 --> 00:22:04.000 He was another great jeans guy, right? 00:22:04.319 --> 00:22:04.880 Jeans guy. 00:22:05.680 --> 00:22:09.680 He loved our our previous jean that we that we sold. 00:22:10.079 --> 00:22:11.039 We could say blue delta. 00:22:11.279 --> 00:22:11.599 Blue Delta. 00:22:12.000 --> 00:22:13.759 We can say blue we used to use blue delta. 00:22:13.839 --> 00:22:15.200 We now use custom made jeans. 00:22:15.359 --> 00:22:17.200 We got kicked to the curb just like you did. 00:22:17.519 --> 00:22:24.799 We incentivized him with we just gave him a free pair of custom made jeans because we didn't know how they were going to fit and feel on him. 00:22:25.039 --> 00:22:27.359 He's a little bit of a tough fit. 00:22:27.680 --> 00:22:34.480 And at this point, I think he's probably bought six or seven pairs of jeans from us. 00:22:34.799 --> 00:22:38.880 And this is all on top of what he what he actually brought because we don't have jeans clients. 00:22:38.960 --> 00:22:41.759 I mean, we don't have shirts clients, we don't have jeans or pants clients. 00:22:41.920 --> 00:22:45.759 This is just he's a suit, jacket, pants, sport coat guy. 00:22:45.920 --> 00:22:48.480 And so we also do jeans for him as well. 00:22:48.720 --> 00:22:49.039 Yes. 00:22:49.200 --> 00:22:51.599 So it's with a couple of birds of that stone. 00:22:51.839 --> 00:22:55.759 I feel like, and I think I've I've been meaning to say this for a little while. 00:22:56.240 --> 00:23:09.200 So often we get these DMs from people, clothiers, who want to know about our they assume, I think, that everything that we do is this super slick, automated, predictable process. 00:23:09.359 --> 00:23:11.119 And it's just not. 00:23:11.599 --> 00:23:13.200 We are not volume. 00:23:14.240 --> 00:23:19.440 We're we're specialized, we're individual, we have brains, we have relationships. 00:23:20.160 --> 00:23:27.519 I just ran into one of my clients at the hotel I was staying at in Chicago over the weekend and ran up to him, gave him a big hug. 00:23:27.680 --> 00:23:28.480 Hey, how's it going? 00:23:28.640 --> 00:23:35.839 I've never hung out with him here, but you know, we don't work with so many people where I don't recognize these people. 00:23:37.519 --> 00:23:40.319 And I would also happen to be wearing something that he doesn't own. 00:23:40.480 --> 00:23:47.519 So you better believe when he comes back to pick up the things that he's got pending, I'm gonna be saying, Hey, remember that thing I was wearing? 00:23:47.920 --> 00:23:48.559 You saw me wearing this. 00:23:48.720 --> 00:23:54.720 When I ran, well, and this is the thing is I brought this sort of jacket shirt thing that I'd never worn before. 00:23:54.880 --> 00:23:57.039 And uh I wore it every day. 00:23:57.119 --> 00:23:59.039 We were in Chicago because the weather kind of sucked. 00:23:59.119 --> 00:24:00.400 It was rainy, it was windy. 00:24:00.559 --> 00:24:06.240 I'm so glad I brought it because I every every photo I have of myself on that trip, you'd think it was the same day. 00:24:06.400 --> 00:24:08.559 Because I was wearing the same thing every single day.

00:24:08.720 --> 00:24:18.319 But I'm gonna sell one to him when I see him again because he doesn't have one, he wasn't wearing one, and I know he doesn't have one, and I'm gonna be able to use that in order to uh get that sale. 00:24:18.559 --> 00:24:27.920 But we're not running this super slick, fast-paced, you know, virtual tech business. 00:24:28.400 --> 00:24:31.599 We use our brains, we think of people, we reach out. 00:24:31.839 --> 00:24:33.680 It can be that simple. 00:24:34.559 --> 00:24:38.160 Targeted, targeted, targeted, targeted. 00:24:38.319 --> 00:24:50.000 That is our mentality when it comes to reaching out to clients, to for whatever reason, to drum up business, to incentivize, to try something new. 00:24:50.240 --> 00:24:54.880 Everything is targeted because we are a margin business. 00:24:55.359 --> 00:25:01.599 And that is our as it as it relates to discounts, discounts, discount behavior attracts discount buyers. 00:25:01.839 --> 00:25:16.880 The first thing we ever did when we came out with Clothier Coaching years ago was a for those of you not in the uh the online course world, there's something that's called a a freemium, a freebie. 00:25:17.440 --> 00:25:23.599 And you offer something for free to get people invested in you. 00:25:24.400 --> 00:25:26.079 Does anyone remember what ours was called? 00:25:26.880 --> 00:25:28.720 Three, two, one. 00:25:29.279 --> 00:25:32.240 Five mistakes you're making that are costing you money. 00:25:33.039 --> 00:25:35.519 I accidentally said five mistakes you make that are costing you money. 00:25:36.079 --> 00:25:41.839 I wish I had it's five mistakes you are making that are costing you money. 00:25:42.240 --> 00:25:47.200 One of which, I believe it's number two, was you're casting too broad a net. 00:25:47.759 --> 00:25:48.160 Mm-mm. 00:25:49.119 --> 00:25:50.160 That was the last one. 00:25:51.359 --> 00:25:53.599 The number two was you're always on sale. 00:25:53.839 --> 00:25:54.799 Well, you're discounting. 00:25:55.200 --> 00:25:57.279 That's exactly what we're talking about right now. 00:25:57.519 --> 00:26:00.079 Yeah, you have to be targeted. 00:26:00.720 --> 00:26:04.960 And also, just straight up discounting isn't a good look. 00:26:05.200 --> 00:26:06.720 Do you understand yet? 00:26:06.880 --> 00:26:08.880 And uh I that kind of sounds rude. 00:26:09.119 --> 00:26:10.160 You're not stupid, right? 00:26:10.319 --> 00:26:11.920 Regulars, you're you're smart. 00:26:12.000 --> 00:26:13.200 I and you're not supposed to. 00:26:13.519 --> 00:26:14.880 I'm a big boy. 00:26:15.119 --> 00:26:15.920 I'm smart. 00:26:16.240 --> 00:26:18.319 My mom, my mommy says I'm smart. 00:26:18.640 --> 00:26:23.359 Uh no, did you know in communication, you're not supposed to say, does that make sense? 00:26:23.599 --> 00:26:26.480 You're supposed to say, am I making sense? 00:26:26.720 --> 00:26:27.119 Interesting. 00:26:27.359 --> 00:26:30.240 Because if that says if you say, does that make sense?

00:26:30.400 --> 00:26:35.279 You're essentially putting them on the defense where they're they need to admit, like, I don't understand. 00:26:35.519 --> 00:26:41.119 Whereas if you say, am I making sense, it's your fault if you're not making sense. 00:26:41.440 --> 00:26:42.400 I'm working on that. 00:26:42.559 --> 00:26:50.000 Am I making sense when I say discounting and value add feels very similar? 00:26:50.160 --> 00:26:51.920 You might be thinking, well, what's the big deal? 00:26:52.000 --> 00:26:52.799 What's the difference? 00:26:52.960 --> 00:26:54.319 There's a huge difference. 00:26:54.559 --> 00:26:56.960 There's a huge difference in the psychology of it. 00:26:57.200 --> 00:27:00.559 And throwing a free shirt, there's not a difference. 00:27:00.799 --> 00:27:01.279 Right. 00:27:01.440 --> 00:27:04.799 The only difference that exists is the psychology of it. 00:27:05.279 --> 00:27:13.119 It's the same thing for us, but the result is better for us and the client if we do it in the value proposition way. 00:27:13.359 --> 00:27:16.799 You know what's a perfect example of this that I've realized? 00:27:17.119 --> 00:27:20.960 Uh booking your hotel stay on Amex travels. 00:27:21.200 --> 00:27:22.000 And here's why. 00:27:22.480 --> 00:27:28.720 It always costs if it's not exactly the same as booking direct through the hotel, it's maybe a little bit more. 00:27:29.200 --> 00:27:29.519 Okay. 00:27:30.160 --> 00:27:33.599 Like marginally, five bucks, ten bucks a night. 00:27:34.079 --> 00:27:35.119 Not that much more. 00:27:35.279 --> 00:27:42.960 However, if you book through Amex Travels, they offer you, if available, an early check-in and a room upgrade, if available. 00:27:43.039 --> 00:27:44.559 So they are not on the hook for that at all. 00:27:44.720 --> 00:27:45.599 And it's not their fault. 00:27:45.680 --> 00:27:49.680 And I've never once called Amex and said, What the fuck? 00:27:50.319 --> 00:27:52.319 You have called Amex and said, Well, I have. 00:27:52.480 --> 00:27:57.039 I got my standard room that I paid for, and I couldn't check in at 10 a.m. 00:27:57.279 --> 00:27:58.799 They made me wait till three. 00:27:59.039 --> 00:28:00.160 It's not their fault. 00:28:00.319 --> 00:28:01.119 It's not their fault. 00:28:01.279 --> 00:28:09.119 But the most genius thing that they do, which gets me every time, is they give you the$600 hotel credit, which is basically money to spend. 00:28:09.440 --> 00:28:13.279 Or$100 a day at their restaurant. 00:28:13.440 --> 00:28:14.400 It's not always a$600. 00:28:15.039 --> 00:28:16.160 No, but that's also sometimes. 00:28:17.279 --> 00:28:17.519 Right. 00:28:17.759 --> 00:28:18.559 So it depends. 00:28:18.640 --> 00:28:35.200 It's it's either it's like$100 a day or$110 a day for to use at the hotel, like a breakfast credit, a food credit, and or a$600 hotel credit where you use it for the hotel or for the spa, or you know, if you need to send out something for dry cleaning, it's your room charges. 00:28:35.440 --> 00:28:37.599 So they're not discounting the room. 00:28:37.680 --> 00:28:42.640 In fact, you're paying a little bit more, but you get something in return. 00:28:42.880 --> 00:28:46.799 And it's enough of a difference where I always choose to book through Amex. 00:28:47.599 --> 00:28:53.599 Unless for some reason there's not like the cancellation policy is really bad or something. 00:28:53.759 --> 00:29:01.039 But it's really, really, really rare that I ever book anything that's not through Amex travel. 00:29:01.119 --> 00:29:03.119 And it's for those three reasons. 00:29:03.359 --> 00:29:09.119 I never take advantage of the late checkout because I always like to fly home in the morning so I can be home in the mid-afternoon. 00:29:09.359 --> 00:29:12.240 But early check-in, yes, please. 00:29:12.559 --> 00:29:15.039 Hotel credit, yes, please. 00:29:15.440 --> 00:29:16.240 Value add. 00:29:16.400 --> 00:29:17.279 It's a value add. 00:29:17.519 --> 00:29:18.640 And hook line and sinker. 00:29:18.880 --> 00:29:20.400 And I'm willing to pay more for it. 00:29:20.559 --> 00:29:26.000 Hook line and sinker for Kenny booking every single trip he ever takes through Amex's platform. 00:29:26.559 --> 00:29:28.559 Like it everybody wins. 00:29:28.720 --> 00:29:33.359 And sometimes when you do get a room upgrade, oh my gosh, it's great. 00:29:33.680 --> 00:29:36.000 But you I don't expect it. 00:29:36.160 --> 00:29:36.400 No. 00:29:36.640 --> 00:29:37.519 It's not a guarantee. 00:29:37.759 --> 00:29:38.319 No, it's no. 00:29:38.640 --> 00:29:40.880 And it's great when it happens, but it often doesn't. 00:29:40.960 --> 00:29:41.839 And sometimes it does. 00:29:41.920 --> 00:29:45.759 I just got upgraded at in Chicago to a suite, which was great, awesome. 00:29:45.920 --> 00:29:46.559 Loved it. 00:29:46.880 --> 00:29:49.599 Super, you know, had a great experience. 00:29:49.920 --> 00:29:52.960 But I would have been just as happy in a standard room. 00:29:53.359 --> 00:29:54.720 That's a perfect example. 00:29:54.880 --> 00:29:57.359 And I am if I could pat myself on the back, I would. 00:29:57.599 --> 00:29:59.759 You'd be you'd do it a lot if you could pat yourself on the back. 00:30:00.319 --> 00:30:01.759 So there think about that. 00:30:01.920 --> 00:30:02.640 And you know what? 00:30:02.799 --> 00:30:04.880 I'm not gonna, I'm not gonna mince words. 00:30:05.039 --> 00:30:12.960 That's kind of a maybe it's a bit of a luxury uh take. 00:30:13.759 --> 00:30:31.359 But you okay, yeah, maybe, but that's why we also talk about the importance of market research and knowing what's out there so that you can provide that luxury approach to your clients through your business. 00:30:31.920 --> 00:30:37.440 Like I agree it's a a first world benefit or a luxury take. 00:30:37.839 --> 00:30:44.160 But for those of us who want to run luxury businesses, we better have a luxury take or two. 00:30:44.640 --> 00:30:48.720 We better have experienced

something that's a luxury take. 00:30:48.960 --> 00:30:52.079 I said that in our the newsletter that went out this morning. 00:30:52.160 --> 00:30:54.400 If by the way, if you want to be on our newsletter, it's free. 00:30:54.640 --> 00:31:00.079 We send you a weekly email with uh episode reminder and just a little extra context for the episode. 00:31:00.240 --> 00:31:04.960 All you have to do is go to clotheyeourcoaching.com and scroll all the way to the bottom and sign up. 00:31:05.119 --> 00:31:06.480 But that's I said that. 00:31:06.640 --> 00:31:25.359 I I was recapping my visit to Chicago and I was saying, I mentioned that I ran into a client and I said, it's so interesting to me because if you don't put yourself in these places, these experiences where you ever experience anything luxury, yet you're claiming that you do luxury suits, you are incorrect. 00:31:25.599 --> 00:31:26.000 Right. 00:31:26.160 --> 00:31:29.839 You need you can't say that if you don't actually know what you're saying. 00:31:30.079 --> 00:31:36.720 And people who experience that stuff, aka your target demographic, they can tell. 00:31:37.279 --> 00:31:39.839 They can tell if you're faking it or not. 00:31:40.160 --> 00:31:42.319 Value add, Amex travels, that's what we were talking about. 00:31:42.480 --> 00:31:44.160 So discounts are bad. 00:31:44.799 --> 00:31:51.359 No, but I don't think we have to hammer home the point of discount behavior attracts discount buyers. 00:31:51.519 --> 00:31:53.599 Um, I I think that point is very clear. 00:31:53.680 --> 00:31:56.319 It's a it's again a psychology thing. 00:31:56.559 --> 00:32:03.920 Just like value proposition speaks really uniquely to people of a certain caliber. 00:32:04.160 --> 00:32:18.400 I think it would be helpful if you could sort of as we wrap up, give some exam other examples maybe of value add as it relates to like whether you're in your appointments or you're sure back and forth with someone. 00:32:18.880 --> 00:32:19.200 All right. 00:32:19.440 --> 00:32:24.799 Let me just let me just fly by the seat of my pants here. 00:32:25.039 --> 00:32:26.559 I can start with one if you want to think. 00:32:26.799 --> 00:32:27.839 Uh yeah, sure. 00:32:28.079 --> 00:32:30.559 Here's one, we've mentioned it before on the podcast. 00:32:30.720 --> 00:32:39.119 As we've been getting emails from people who want alterations on stuff because they've been losing weight, the value proposition is not, oh yeah, we'll take care of those alterations for free. 00:32:39.200 --> 00:32:39.759 Come on in. 00:32:39.920 --> 00:32:49.279 It's if you want to buy something new for your new body, go ahead and bring some of the things you want altered. 00:32:49.359 --> 00:32:51.759 We'll take a look and see if there's anything that can be done. 00:32:51.920 --> 00:32:54.880 That's our version of an Amex free upgrade. 00:32:55.119 --> 00:32:56.000 I don't know. 00:32:56.240 --> 00:32:56.880 We'll see. 00:32:57.039 --> 00:32:58.000 I don't know if it's possible. 00:32:58.160 --> 00:32:59.039 We'll see. 00:32:59.359 --> 00:33:03.200 Uh, and provided that there is something we could do, we will take care of it complimentary. 00:33:03.359 --> 00:33:06.480 But the premise of the meeting is that there's a purchase being made. 00:33:06.559 --> 00:33:11.839 So that's it's an added value where they come in to buy something and they're getting something else taken care of. 00:33:12.160 --> 00:33:22.559 Added value is, I think, by definition, is the one that the one thing that we do that you could argue is a discount, which is our shirt package. 00:33:22.720 --> 00:33:25.119 Buy five, get the sixth for free. 00:33:25.359 --> 00:33:26.000 Right. 00:33:26.319 --> 00:33:30.000 And we don't schedule appointments for somebody to come in and do the shirt package. 00:33:30.160 --> 00:33:33.759 We're often working with somebody who's doing who's doing a bunch of things. 00:33:33.920 --> 00:33:38.799 And in the moment, they can't figure out, they're like, ah, you know, I'll do a few shirts too. 00:33:38.960 --> 00:33:43.839 They land on four, four shirts, and it's like, well, we have this buy five, get a six for free. 00:33:44.000 --> 00:33:45.119 They're like, oh, okay, sounds good. 00:33:45.200 --> 00:33:46.559 I'll pick out two more. 00:33:47.200 --> 00:33:48.559 That's a perfect example. 00:33:48.720 --> 00:33:52.319 By the way, you mentioned, and I interrupted, but we did use to schedule for that. 00:33:52.400 --> 00:33:54.640 I'm not, we're not saying you should never, you could never. 00:33:54.880 --> 00:33:54.960 Right. 00:33:55.200 --> 00:33:56.319 We just don't do it anymore. 00:33:56.480 --> 00:34:02.799 Uh, but that is that used to be our uh order minimum was a shirt package. 00:34:03.119 --> 00:34:08.320 And it is the only thing, is like the only thing that you could argue is a discount that we have online. 00:34:08.559 --> 00:34:22.159 So that's an example, and I I think it works really well because it it really does help set people up for success in their shirts rather than somebody coming in and and buying two or three that you know they're gonna wear all the time and beat the hell out of. 00:34:22.320 --> 00:34:32.000 Like it puts them in a position where they really see the value in buying five to get that sixth, and they are so much better prepared in that scenario. 00:34:32.159 --> 00:34:44.079 Um, here's here's another thing that that we are known to do that could be uh seen as a discount, I suppose, but it's not. 00:34:44.320 --> 00:34:45.760 And here's why. 00:34:46.000 --> 00:34:52.159 So, or here's what, and then I'll I'll explain why it's not necessarily just a straight up discount. 00:34:52.559 --> 00:34:58.320 Let's say we're in a meeting with somebody and they're buying a couple of suits or a suit and a spore coat pant combo. 00:34:58.400 --> 00:35:01.199 Okay, so they land on the suit really easily. 00:35:01.280 --> 00:35:02.000 It's a blue suit. 00:35:02.079 -->

00:35:10.800 They land on a uh red wine jacket with a uh blue uh check, and they really liked something they were not expecting to really like. 00:35:11.039 --> 00:35:14.480 A green check jacket, and they're like, you know what? 00:35:14.639 --> 00:35:18.079 I'm I'm just gonna, I'm just gonna, I don't need it today. 00:35:18.320 --> 00:35:20.320 Let's just focus on these two things. 00:35:21.199 --> 00:35:22.079 Timeout. 00:35:22.400 --> 00:35:25.440 So when they say that, don't put it away. 00:35:25.679 --> 00:35:26.400 Don't put it away. 00:35:26.559 --> 00:35:27.199 Put it off to the side. 00:35:27.360 --> 00:35:28.079 Put it off to the side. 00:35:28.239 --> 00:35:29.360 Don't close the book and put it away. 00:35:29.519 --> 00:35:30.320 Put it off to the side. 00:35:30.480 --> 00:35:36.960 And at some point, whether you know this off the top of your head or you've needed to take just a minute to do a little bit of math. 00:35:37.119 --> 00:35:39.840 Nothing wrong with that, by the way, saying, Hey, can it give me a minute? 00:35:40.079 --> 00:35:49.519 Let's say this order total is coming out to uh 12 grand, okay, for this client getting these things plus his shirts and whatever else he buys. 00:35:50.000 --> 00:35:58.719 And you've done the math, and you had originally communicated that this jacket was gonna cost him 3,300 bucks. 00:35:59.039 --> 00:36:05.199 You've done the math, you know what you need to make, you know what you w you know where your your kind of your bottom number is. 00:36:05.440 --> 00:36:09.840 And let's say at the meeting you say, all right, so here's everything. 00:36:10.079 --> 00:36:16.000 Before we close out here, and then you bring the jacket out and say, remember this? 00:36:16.480 --> 00:36:21.679 If we did this jacket too and we just call this order total 14.5, would you do the jacket? 00:36:22.239 --> 00:36:26.079 Half the time they're gonna say, Yeah, let's do it. 00:36:26.800 --> 00:36:36.159 And I only in that scenario shaved uh what I shave off um well if you said it was 33, you shaved 3300 off. 00:36:36.239 --> 00:36:38.480 Yeah, 800, shaved 800 bucks off. 00:36:38.639 --> 00:36:39.920 My margin's still taken care of. 00:36:40.000 --> 00:36:42.320 I can sell that jacket for 2500 bucks, no problem. 00:36:42.480 --> 00:36:45.440 And I'm still I'm still totally fine in my margin. 00:36:45.679 --> 00:36:50.079 Some of you are like shitting your pants right now, saying, What are you thinking? 00:36:50.159 --> 00:36:51.119 That is such a bad idea. 00:36:51.280 --> 00:36:55.119 And some of you are saying, I've never even sold a$2,500 sport coat. 00:36:55.360 --> 00:36:56.000 Yeah. 00:36:56.719 --> 00:37:11.840 But and again, like I phrase it in terms of like, if we call this order total this, as opposed to if I can if I can give you this$3,300 jacket for$2,500, would you do it? 00:37:12.000 --> 00:37:12.800 And you know what? 00:37:12.960 --> 00:37:14.480 Maybe somebody will respond well to that. 00:37:14.639 --> 00:37:16.320 That's just not how we typically phrase it. 00:37:16.480 --> 00:37:16.639 Right. 00:37:16.800 --> 00:37:22.960 We typically like to present as like if the order total becomes this, that's a pretty nice deal on this jacket. 00:37:23.039 --> 00:37:27.119 Would you still do you do you want to just do it and we can design it really quickly? 00:37:27.280 --> 00:37:31.519 And then in the design, you know, they maybe that maybe they'll find another shirt they want to wear with it. 00:37:31.840 --> 00:37:35.199 But those are those are these like kind of value proposition things. 00:37:35.280 --> 00:37:36.400 And yes, it's a discount. 00:37:36.559 --> 00:37:40.960 Yes, it is a discount objectively, but it's phrased strategically. 00:37:41.039 --> 00:37:45.360 And ultimately it's the client feeling like they're getting a really great value add. 00:37:45.519 --> 00:37:53.039 You know what you could do if you were an LCC, I'd tell you you should sell them another pair of pants for their new jacket that they're getting such a great deal on. 00:37:53.199 --> 00:37:54.079 There you go. 00:37:54.320 --> 00:37:55.440 So that's a great one. 00:37:55.599 --> 00:38:00.960 Another one, a value add that we do, which is not a discount and actually just saves us money. 00:38:01.199 --> 00:38:08.320 And this has been one of our oldest practices, and I stand by it, swear by it, is well, it's twofold. 00:38:08.719 --> 00:38:20.239 The first is everybody gets a shirt, uh, whether they buy one or not, uh, whether they want one or not, because I don't want to do jacket sleeve alterations. 00:38:20.320 --> 00:38:24.239 And if you don't have one of our shirts, you are measured, your jacket sleeve is measured for our shirt. 00:38:24.320 --> 00:38:32.800 So if you don't, if you don't have one and you don't buy one, well, now you think your jacket sleeves are wrong and I'm making alterations to fit a$75 shirt that you're wearing. 00:38:32.960 --> 00:38:34.559 So I'm not gonna do that. 00:38:34.800 --> 00:38:44.960 We never we used to throw in a free shirt just right off the bat for every suit or like jacket that somebody did. 00:38:45.199 --> 00:38:50.239 So if someone bought three jackets, we'd say, okay, you get three free free shirts, and then you can buy more. 00:38:51.119 --> 00:38:52.639 Yeah, no one bought more. 00:38:52.800 --> 00:38:53.599 They never bought more. 00:38:53.760 --> 00:39:00.639 So then we decided this was in one of our own sort of uh what's the word when you're brainstorming. 00:39:00.880 --> 00:39:01.440 Goal setting. 00:39:01.599 --> 00:39:02.639 Yeah, it was a goal setting. 00:39:02.880 --> 00:39:05.199 Evaluating evaluation, that's it. 00:39:05.440 --> 00:39:08.000 We were evaluating and we said, we shouldn't do that anymore. 00:39:08.159 --> 00:39:10.960 How about we just like let's give them the opportunity to buy it? 00:39:11.119 --> 00:39:15.840 Before we say you get three free shirts, we say something about shirts and we allow them

to purchase them. 00:39:15.920 --> 00:39:22.480 And if they say, Oh, you know what, I actually don't want any shirts, then we can offer to do one complimentary, one. 00:39:22.960 --> 00:39:31.519 But if you know, our experience now is like 90 some percent of them are actually buying the shirts rather than us needing to do them for free. 00:39:31.679 --> 00:39:39.119 But on the very, very rare occasion where somebody doesn't want to buy a shirt, they're adamant that they don't want shirts, we're still throwing one in for free. 00:39:39.280 --> 00:39:45.440 We have not done a jacket sleeve alteration that was necessary in years. 00:39:45.840 --> 00:39:50.079 So it's twofold because everyone loves our shirts. 00:39:50.239 --> 00:39:50.480 Yeah. 00:39:50.719 --> 00:39:52.400 We're closet killers. 00:39:52.800 --> 00:40:02.480 So now they only have the, I mean, unless they want to wear their cheap, bad fitting shirts more, they need to buy more shirts and they will. 00:40:02.880 --> 00:40:08.480 So it it it's again, long game, benefit, value add, relationship building. 00:40:08.559 --> 00:40:10.960 Like that's how luxury businesses operate. 00:40:11.119 --> 00:40:13.119 So that was just the first half of what I was gonna say. 00:40:13.280 --> 00:40:29.199 The second half of what I was gonna say was speaking of free shirts, do not undervalue or underestimate the power of a free shirt to save you from any number of negative things. 00:40:29.920 --> 00:40:40.320 Offering to throw in a shirt, oh, I'm so sorry that this took XYZ longer, there was some issue or something bad happened, or you, you know, you got mad at me, or you know, whatever it was. 00:40:40.480 --> 00:40:44.079 A free shirt works almost every time. 00:40:44.320 --> 00:40:54.000 And it's a hell of a lot easier and less expensive to do a free shirt than it is to remake something or refund something or get a bad review, fill in the blank. 00:40:54.239 --> 00:40:59.360 Any other value proposition things instead of discounts that you can think of off the top of your head? 00:40:59.679 --> 00:41:00.880 I think we covered it. 00:41:01.119 --> 00:41:04.079 I'm sure more will, I'm sure more will have to mind. 00:41:04.320 --> 00:41:04.639 We'll have more. 00:41:04.880 --> 00:41:09.760 But again, the general the general theme of today's podcast is a discounts are bad. 00:41:09.920 --> 00:41:10.320 Don't do it. 00:41:10.480 --> 00:41:12.559 Discount behavior attracts discount buyers. 00:41:12.639 --> 00:41:18.559 Don't do the JCPenney thing, where you you train your customers to expect these discounts. 00:41:18.639 --> 00:41:27.039 And then even if you enter the re-enter the market with the lowest bottom-of-the-barrel price points, they all stop buying because they would rather go somewhere where they feel like they're getting a deal. 00:41:27.199 --> 00:41:32.719 It's psychology, which is why instead of discounting, you value add. 00:41:32.960 --> 00:41:38.960 We worked with a guy years ago who was

so, so picky. 00:41:39.199 --> 00:41:41.280 And we haven't seen him in many years. 00:41:41.519 --> 00:41:44.079 Don't believe he's on our current roster. 00:41:44.639 --> 00:41:54.239 But uh, he was so picky and uh things had a tendency to go wrong because he was so picky and he was very nitpicky. 00:41:54.320 --> 00:42:02.639 It wasn't just that he was particular, it was that, you know, like, oh, this is uh an eighth of an inch different than the last one. 00:42:02.800 --> 00:42:08.800 When I was measuring these at home when I got home and comparing them to, like, probably medically something. 00:42:09.039 --> 00:42:12.719 It's time to play hot or not. 00:42:13.280 --> 00:42:13.599 Oh. 00:42:14.559 --> 00:42:16.639 Let's do a sound effect, please. 00:42:18.239 --> 00:42:18.880 You know what? 00:42:18.960 --> 00:42:22.960 That would the toilet flush and the fart would be the perfect sound effect for most of our leads. 00:42:23.119 --> 00:42:24.000 Oh, okay. 00:42:24.239 --> 00:42:25.519 Here's the name. 00:42:25.760 --> 00:42:27.039 I'm gonna say that's a hot lead. 00:42:27.199 --> 00:42:28.079 Oh, Kenny's saying hot. 00:42:28.400 --> 00:42:29.679 So I gotta go not. 00:42:30.000 --> 00:42:33.360 I gotta be the opposite, the antithesis of Kenny. 00:42:33.920 --> 00:42:40.079 And that really is my life's goal to be the opposite of the way Kenny lives his life. 00:42:40.320 --> 00:42:41.280 Get in line, everyone. 00:42:41.519 --> 00:42:42.239 Um, okay. 00:42:42.559 --> 00:42:48.000 So the lead is it's really hard to say if this is a hot lead or not. 00:42:48.159 --> 00:42:49.119 Really tough to say. 00:42:49.280 --> 00:42:49.840 Why? 00:42:50.159 --> 00:43:03.920 Because he's getting his hair cut next door tomorrow and wants to stop by tomorrow, but he did say that he needs items after his hair, but it's it's gonna require a little bit of back and forth. 00:43:04.159 --> 00:43:04.480 Okay. 00:43:04.800 --> 00:43:05.199 All right. 00:43:05.360 --> 00:43:08.239 That was that was today's uh version of hot or not. 00:43:08.480 --> 00:43:08.960 We don't know. 00:43:09.039 --> 00:43:10.079 That's the it's lukewarm. 00:43:10.239 --> 00:43:11.599 I don't even think we can see him tomorrow. 00:43:11.679 --> 00:43:12.559 So well, we'll see. 00:43:12.719 --> 00:43:14.000 The timing actually might work out. 00:43:14.079 --> 00:43:15.199 Uh is it in the morning? 00:43:15.519 --> 00:43:15.840 No. 00:43:16.239 --> 00:43:16.559 Oh. 00:43:16.880 --> 00:43:17.679 We'll figure it out. 00:43:17.760 --> 00:43:18.320 We'll figure it out. 00:43:18.400 --> 00:43:19.280 Okay, anyways. 00:43:19.599 --> 00:43:24.079 So uh the end of the story was that super picky guy. 00:43:24.239 --> 00:43:28.559 Uh, we kept discounting, throwing things in for free. 00:43:29.199 --> 00:43:32.559 And eventually we got to the point where he said, Hey guys, you know what? 00:43:32.880 --> 00:43:34.719 I would rather not get discounts. 00:43:34.800 --> 00:43:36.639 I would rather not get stuff

for free. 00:43:36.800 --> 00:43:39.119 I want to pay for things that are right. 00:43:39.519 --> 00:43:41.679 And we thought, yeah. 00:43:42.480 --> 00:43:43.599 Yeah, I get that. 00:43:43.840 --> 00:43:50.880 And that's probably the attitude that your good clients have at the time he was a good client. 00:43:51.519 --> 00:43:53.519 They don't want necessarily discounts. 00:43:53.599 --> 00:43:55.920 They don't want free stuff necessarily. 00:43:56.079 --> 00:43:59.280 They d they just want to pay for things and they want them to be right. 00:44:00.079 --> 00:44:00.960 And they want to love them. 00:44:01.840 --> 00:44:07.199 And the five mistakes you're making that are costing you money, the first one is your wallet is in your client's pocket. 00:44:07.440 --> 00:44:11.039 And I think the discount mindset is a byproduct of that. 00:44:11.280 --> 00:44:11.679 Yeah. 00:44:11.920 --> 00:44:16.000 Where a lot of times custom clothiers can't afford to wear the suits they're selling. 00:44:16.800 --> 00:44:23.760 As in, you would never spend three, four, five, six thousand dollars on a suit because you can't afford to do that. 00:44:24.000 --> 00:44:25.199 But your clients can. 00:44:25.599 --> 00:44:29.599 So you need to get over yourself and let them buy that from you. 00:44:30.000 --> 00:44:33.599 Just because you wouldn't buy it or you would need a discount to do it, doesn't mean they would. 00:44:33.920 --> 00:44:36.400 Don't don't assume everybody needs a discount to work with you. 00:44:36.639 --> 00:44:42.320 Just because you might need one doesn't mean that's why things feel slow. 00:44:42.960 --> 00:44:50.320 So we have to, as custom clothiers, we have to get out of the headspace of discounting is going to yield a good result for me. 00:44:50.480 --> 00:44:51.199 It's not. 00:44:51.440 --> 00:44:56.079 Even if a bunch of people book, it's a bad result because they're not the right clients for you. 00:44:56.320 --> 00:45:06.880 Value add, figuring out a strategic way to be honed in and to power wash your driveway instead of to just hose it down and spray it down willy-nilly. 00:45:07.119 --> 00:45:12.239 That's going to achieve a much better end result for you, both probably in the short term and the long term. 00:45:12.480 --> 00:45:15.519 Maybe this was the reminder or the encouragement you needed. 00:45:15.679 --> 00:45:18.239 I wish I would have heard this podcast about 10 years ago. 00:45:18.400 --> 00:45:19.679 Things could have been different. 00:45:19.760 --> 00:45:21.519 But you know, you don't you know what, guys? 00:45:21.599 --> 00:45:24.000 Don't bother with that discount. 00:45:24.320 --> 00:45:24.719 Yeah. 00:45:25.039 --> 00:45:26.800 It says no. 00:45:27.039 --> 00:45:28.079 Maybe knock that off. 00:45:28.320 --> 00:45:31.360 Wish I could have heard that, but you just did. 00:45:31.599 --> 00:45:33.840 So now you know what not to do. 00:45:34.079 --> 00:45:37.440 And we've given you some good ideas of what you could do instead. 00:45:37.599 --> 00:45:39.440 I want to hear when it works, because it will. 00:45:39.679 --> 00:45:40.559 Let me know when it works. 00:45:40.639 --> 00:45:45.199 And let us know if there's any other topics you're feeling like you want to hear about or talk through. 00:45:45.360 --> 00:45:51.039 We are still the only podcast talking to custom clothiers about running their business. 00:45:51.199 --> 00:45:54.639 And because of that, we need a five-star rating from you. 00:45:55.599 --> 00:46:01.360 Yeah, a five-star rating on however you're listening, pref preferably Apple, would be great. 00:46:01.519 --> 00:46:06.239 Remember that feeling when you discovered the podcast and you're like, yes, finally, someone talking about what I need. 00:46:06.639 --> 00:46:10.159 We want more colour custom clothiers to be able to experience that as well. 00:46:10.719 --> 00:46:20.320 So don't do, don't operate with poverty and say, well, I don't want more people to discover this because I don't want them to have this information. 00:46:20.400 --> 00:46:27.920 Because at the end of the day, the more people who operate in a high-end way, the better behaved everybody that you were going to work with is going to be. 00:46:28.079 --> 00:46:29.599 We always say that about consultations. 00:46:29.760 --> 00:46:32.000 Just think of every custom clothing you refused to take them. 00:46:32.159 --> 00:46:39.519 Yeah, just think of every lead that came into your inbox, you knew that that person can't go get a whole bunch of free consultations other places. 00:46:39.679 --> 00:46:40.320 That'd be great. 00:46:40.480 --> 00:46:42.159 You would get a lot more people booking. 00:46:42.239 --> 00:46:45.440 So the more people that operate with this sensibility, the better. 00:46:45.760 --> 00:46:49.519 Everyone wins, unlike discounts where everyone loses. 00:46:50.480 --> 00:46:51.440 Disappointment's over. 00:46:51.519 --> 00:46:52.559 We'll see you at your next one. 00:46:52.880 --> 00:47:17.519 If you're a custom clothier and you want to be more profitable, less stressed, and work with more of your target demographic client who spends more and buys more often, we share our exact strategies on how to do that and our resources available now on clothiercoaching.com, including Million Dollar Manual, our playbook for turning your sixth-figure business into a custom clothing business that makes more than a million dollars every year. 00:47:17.679 --> 00:47:27.920 For higher touch, more direct access to us, we have a small mentorship group called Luxury Clothier Collective, where we're actively helping clothiers around the country become their markets leader. 00:47:28.079 --> 00:47:35.440 If you're serious about finally building that profitable luxury custom clothing business you've always wanted, this is your next move. 00:47:35.599 --> 00:47:38.480 Join the wait list and we'll let you know when enrollment opens again. 00:47:38.639 --> 00:47:40.079 Thanks for listening.