Christmas is all about getting through that list fast and bagging as many bargains along the way as possible. While all companies understand this ethos of most consumers, there are times when you may not need to discount your items in order to entice more customers.
There are certain days when people expect to see a discount and it is in your best interest as a business owner to offer a discount on these days i.e. December 8th. In this event, all businesses usually offer a discount as it is traditionally a busy shopping day in Ireland. Before this comes ‘Black Friday’ and ‘Cyber Monday’. So, should you engage in all, some or none of these typical reduction days?
In order to answer this question you need to ask yourself this:
- Are my products priced high enough to allow me offer a discount and still make a profit?
- Does my product offer enough value at its current price without having to reduce the price?
- Can I instead offer a cost-effective bundle rather than reducing the price of a product?
- Will it damage the perceived value of my product to reduce it?
- Have I given my customers or fellow business-owners the expectation of a discounted period?
Never feel pressured into having a sale on all of these days, you can not make a profit from continuously discounting your products. It’s great to see a busy shop, units flying out the door but if that does not equate to money in the till then it’s pointless.
Financial pressures and burdens are too real at this time of year for everybody but this does not mean people are unwilling to spend. If they see the VALUE in what they are buying then they will invest. So make sure you are pushing the right angle of your product. Sell them the added benefits too, show them what they gain from purchasing with you. Once they have tried it, if your product is good enough and you have managed to leave an impression on them, they will come back for more; regardless of a discount day!
Cherry Marketing Bandon 