By David Holland

July 6, 2016


0 comments

Never Discount a Product or Service Again…

Hear me out here. You’re trying to sell your current stock of summer t-shirts in your company and you want to clear them…

…What do you do? Run a sale.

What if I told you that this is a bad idea and that you should never run a sale or discount again?

“Why would I do that? I love seeing the spike in sales as a result of discounts and flash promotions”

Your customers love it too. You love the sales spike and your customers love your discounts, so what’s the big deal?

Well I have a little story to tell first.

Real word examples of the big problem

I enjoy fitness and health and I personally buy a lot of health supplements over the web. One of the sites I go to regularly is MyProtein. Now, because I’m a regular buyer I’m subscribed to their email list, in which I receive an email every day at least, four of which a week are sales and discount emails and usually one of which is a big ‘30% off everything for today only’ kind of flash sale.

Now, I’m looking to buy some more supplements from them which I need relatively quickly because my supply has run out, but there’s no offers on their website.

I’ve checked my emails and nothing. So I bite the bullet and wait a day, there’s offers in my inbox again, but only on apparel – not what I’m looking for. What do I do next?

Yep, I’ve run out of patience and bought from a competitor who can deliver what I’m looking for at the right price.

I’ve become so accustomed to the discounts that without one, I won’t buy.

Other brands do this as well. Domino’s are a big player. How many people search for ‘dominos codes’ on google? Over 12,000 a month according to Google’s Keyword Planner. Domino’s regularly put offers out across a wide range of media platforms and this leads to people abandoning their shopping carts to find the codes or feeling as if they’re paying too much without a discount code.

The solution…

…well, back to those T-Shirts. Instead of cutting them from £10 to £7 to clear the stock, try adding value to the offer, leaving your brand with value.

For example; sell the T-Shirt for £10 with a free pair of sunglasses for a limited time only. Not only have you offered scarcity to rush people to your offer but also value. You’ve added to your offering instead of taken away from it and in the process sold another branded item that could lead to a boost in sunglasses sales.

Now this is only a theoretical example but the rules can apply if your selling anything; products or services.

Discounting your products or services every once in a while is fine. But the spike in sales from it can become addictive and if you get tangled up trying to sell everything this way people will only expect it from you.

About the author

Nice bloke with practical ideas. Former Procter & Gamble, Kraft and IBM sales and marketing executive. Became a business owner 20 years ago. Started multiple businesses including EXELA which is the most successful Keap® & Infusionsoft™ reseller in the EMEA region.

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