Are sales discounts hurting your business?
Having a traditional sale, offering your existing products at a discount, can actually be a dangerous habit. Here’s three reasons:
- Sales on big-ticket items actually reduce revenue, even if the sale is effective
- Sales on most popular items may encourage people to wait until the next sale to purchase more.
- Sales are always limited by the value of the item on sale. Deep discounts can drive sale prices below costs.
Alternatives to sales discounts or lowering prices
Increase Value – Rather than discounting 25%, try increasing the value by 25%. Give the customer more of your item, or a freebie contingent on sales.
BOGO – “Buy one, get one” gives people a discount on the second item.
Bundles – If you sell cameras offer a free or discounted tripod. Create bundles on any products that are closely related.
Freemiums – Give something away completely for free that draws people to your store or website.
Coupons – Coupons are another way to offer sale prices without mass advertising. You can limit the exposure of a coupon code.
Free Shipping – Offering free shipping or free delivery is a well-tested method of increasing sales without decreasing sales revenue.
Be creative and create your own deals, bundles or freebies. Experiment and mix it up for your best results.
Talk with our marketing strategy team to plan your entire year. Call us at (215) 253-3737.
