As Business owners we always tell our clients that we are the Best. To make it sweeter and lucrative deal, we give “Offers”.
We Offered the Clients cheaper billing rate and we offered Non Billable resources like Service companies that you Pay for 1 Engineer while you get 2 Engineers.
While that helped the Client’s business to make money and do more products with More people and more valuation, we didn’t make any additional money.
While a Senior Engineer was charged around $X and another engineer was not billled, end of the day the Client argued that it means each engineer is just $X/2 so there is nothing he got for free, while he sold them for 5X.
It took some time for me to understand that “Offers” is not sustainable and Customers are not Loyal to Offers.
Reducing your rates does not make you a better alternative to your Competitor.
Cutting yourself short, underselling yourself and your business is not the way to sell your Product or Service.
What you should Offer is a great Product, undeniable Customer Service, the Value Proposition of doing Business with you.
That will make your Customer addict to your Product or Service and they will pay for it.