How to Increase Average Sale Value Without Discounting: The 5-Step Profit Formula in Action

If you want to help your coaching clients grow faster—and more profitably—you need to master one powerful concept: improving profit without relying on more leads.

This is exactly what the 5-Step Profit Formula is designed to do. And in this article, we’re focusing on one often-misunderstood piece of that formula:
Average Sale Value—and how to increase it without slashing prices or losing customers.

What Is the 5-Step Profit Formula?

Here’s a quick refresher. Every business grows when it improves these five metrics:

1. Leads

2. Conversions

3. Average Sale Value

4. Number of Transactions

5. Profit Margins

Most business owners obsess over leads. But if you want exponential growth, you need to improve every step. Today, let’s zoom in on Step 3: Increasing the Average Sale Value—without relying on discounts that destroy your profit margin.

Why Most Businesses Struggle With Pricing

Many small business owners would love to raise their prices, but they hesitate. Why?

Because they’re afraid of scaring away customers.

That fear leads them straight to discounting. But here’s the brutal truth:

Discounting is the fastest way to kill your margins and stall your growth.

Even a 10% discount can force you to sell 50% more just to earn the same profit. Let’s break that down:

• Original price: $100

• Cost to produce: $70

• Profit: $30

If you discount to $90:

• New profit: $20

• Now you need to sell 50 units instead of 33 to earn $1,000.

And let’s be honest—most businesses don’t stop at 10%. They slash 20–40% off regularly. And studies show most buyers aren’t even moved by discounts unless they’re at least 40%. That’s a race to the bottom you can’t win.

The Better Strategy: Value-Based Bundling

So how do you increase the average sale value without discounting?

Use bundling.

Bundling means packaging your products or services in a way that makes the offer more valuable—and harder to compare on price alone. This creates what’s known as an apples-to-oranges comparison, which shifts the conversation from price to value.

Customers buy value—not price.
If you clearly communicate your value proposition, you can raise your price and increase conversions.

Real-World Example: The Builder Who Out-Sold the Competition

Let’s take a look at how bundling works in the real world.

A home builder discovered that homebuyers wanted built-in entertainment and security features. So they struck a deal with a home electronics supplier and created a powerful value bundle:

• 50-inch HDTV

• Surround sound system

• Full home security setup

• Fire protection and monitoring system

Retail value: $22,800
Builder cost: $6,500
Installed during construction, at minimal additional labor cost.

Instead of offering homes for $150,000 like the competition, this builder priced theirs at $156,500–$160,000 and led with value.

What happened?

Sales exploded. Buyers saw the added package as a deal, not an upsell. Even if financing was tight, the builder had room to lower the price without sacrificing profitability—because they weren’t cutting corners, they were adding value.

Why Bundling Works (and Discounting Doesn’t)

Bundling taps into perceived value. The customer isn’t just buying a product or service—they’re buying a solution. They don’t feel nickel-and-dimed, and you don’t have to sacrifice margins.

Here’s the key:

When you bundle value, you control the comparison. When you discount, you invite comparison.

Want to stand out in a saturated market? Stop competing on price. Start competing on results, outcomes, and value.

How Coaches Can Apply This Strategy

Whether you’re a business coach or working with clients across industries—like pest control, dog grooming, or home remodeling—bundling works.

Here’s how to implement it:

1. Identify add-on products or services your clients can include with their core offer.

2. Create a compelling bundle that adds real value without ballooning cost.

3. Price it based on total perceived value, not just the sum of the parts.

4. Position the offer as unique, so it can’t be compared apples-to-apples.

5. Train your clients to stop discounting and start demonstrating value.

You’ll not only help them increase their average transaction value—you’ll protect their margins, grow their profit, and make their business easier to scale.

Final Thought

The best part? Bundling works even if the business doesn’t currently offer the added value. Like the builder, your clients can form affiliate relationships or partnerships to build packages that make their offers irresistible.

Want to help your clients grow profitably? Teach them to bundle smart—and stop the discount death spiral.

Until next time,
Adrian Ulsh