Discount Offers & The Dark Side of Discounts

Copyright 2010 Dennis S. Vogel All rights reserved.
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Differentiate your business from competitors by showing you don't do what the others do.

Examples of what big stores do is in this article -
Learning to Discount All Those Juicy Discount Offers Getting Going: The Dark Side of Discounts - WSJ.com

http://online.wsj.com/article/SB10001424052748704700404575391682751995608.html?mod=loomia&loomia_si=t0:a16:g25:r3:c0:b35500732

To find this article, you can choose between copying & pasting the URL from my post into an Internet browser address bar - OR - you can have a search engine/portal search for the article title.

+++++ Excerpts from the Article ++++
Target will begin offering a 5% discount to customers who use its credit card for their purchases at the chain. So is this a good deal or not?

Just about every discount offer raises the same question, since it is genuinely difficult to assess what a fair price really is. In most cases, discounts are intended to entice us to spend more, not less.

Free is seductive. Various studies have found that many people will respond more positively to an offer that appears free, even if it really isn't. For example, consumers prefer a product that costs $5 and includes free shipping to an item that costs $2.50 and requires $2.50 to ship.

Weighing the hassle involved also is important, of course, whether you are switching credit cards, surfing the Web for discounts or clipping coupons.
+++++ End of Excerpts from the Article ++++

How can you avoid being lumped in with retailers like those described in the article?

Jay Abraham (www.abraham.com/aboutjay.html) has often advised us to explain why we can afford to give discounts & other special offers.

Here are some examples (Note- I don't know how long these URLs will be valid since Jay has discontinued publishing his articles in his web site.)

+++++ Example 1 ++++
http://www.abraham.com/articles/Frontline.html
Dear Valued Customer, We are in a serious bind. Due to the popularity of our business, people have to wait in line to rent our skis and our pontoons. We would like you to make a reservation now for your family, so you won't have to wait and we can guarantee you a fun time. We will give you a ten percent discount off the regular rates. Here are our rates...
+++++ End of Example 1 ++++

+++++ Example 2 ++++

http://www.abraham.com/articles/The_Abraham_Method.html
An important point - in fact, it's vitally essential - is that your customers and prospects won't understand or appreciate a value, or a bargain, or a service, or a benefit, unless - and until - you first educate them to appreciate it.

Merely offering a product or service at a specific price (even the best price) doesn't generate excitement or a response until you tell people what they're getting, what a value it is compared to other products and services, and why you can offer such value.
+++++ End of Example 2 ++++

Also help people understand why your offer is important to them. Explain why it's important to them to buy now or at least as soon as they can.

Don't assume they already know because they probably don't know or had given it enough thought.

Thank you for using my blog. Please let me know if I should clarify anything.

Copyright 2010 Dennis S. Vogel All rights reserved.
When you compete against big businesses with big budgets you need powerful marketing strategies & tactics. You'll find them here-
https://thriving-small-businesses.blogspot.com/
http://www.voy.com/31049/