A competitive marketplace gives rise to the feeling one needs to discount to generate to maintain or increase sales.
If you’re a TJ Maxx, Aldi, Walmart, Kmart, McDonald’s, Starbucks - that’s possibly fair enough.
But when you’re a destination retail or hospitality business, then there's smarter ways to go before going down discount alley.
It's surprising how many speciality businesses are programed to automatically slice a price rather than consider more persuasive sales techniques to leverage from.
Business 101 teaches when price is by default a sales and marketing strategy then thats not no strategy at all; acting potentially as a detriment to a brand, its profitability and long term viability.
Before reaching for the razer, maybe ask the question, why do l need to discount, what’s the end game and why can’t we think of something better?
As we all know brands and businesses are built over time.
Customer loyalty, street cred and trust are earned not bought.
Value can be expressed in many non-monetary ways, some proven tools from this tool box are: value adding; examples are upgrades, bundling of products, offering a complimentary side dish on the next visit/purchase, an extended warranty, a free drink, an invite to a special experience.
The list of options is limitless, the main point, it’s better to value add or leverage something that costs little, yet in the hands of the receiver, the customer or guest, the delivered value to them is far greater and therefore of higher perceived value.
When next tempted to knock something off the bill or price, just try adding something of value particularly if the offer generates a repeat visit or next opportunity.