“A cheap price is a shortcut to being cheated.” (Chinese proverb)
Discounting is often likened to a potent, dangerous drug. Many businesses “give it a try” heeding to external pressure. The immediate bump in sales is rewarding, but the drop that follows stings even more. As time goes by, the concessions get deeper and more frequent to satisfy customers who are increasingly habituated to receiving offers. One interesting aspect is that this downward spiral is mostly predictable, which begs the questions: Are organizations discounting intelligently? Is there a healthier way to entice customers without mortgaging one’s brand? This session provides answers and a useful checklist. First, we have to understand that discounting is not synonymous with “tactics.” Quite the opposite, the strongest sign of a clever campaign is its ability to serve the broader objectives of the business. Second, there are steps that managers can take to ensure that their investments in temporary price concessions are, indeed, investments. The overarching goal is to put an end to the familiar “can’t live with it, can’t live without it” feeling associated with discounting.