Comments on: Discounting Prices Discounts Your Brand

By: newegg

newegg — Wed, 04 Nov 2009 02:36:01 +0000

Good discussions. But things like commodities will fluctuate in price depending on supply and demand, stock market activity, weather, etc. so gas prices and food products change regularly.

By: Adobe

Adobe — Sat, 29 Aug 2009 09:51:14 +0000

I think as a manufacturer and retailer of a high quality item that is made from scratch per order, I realized this after having promotions/discounts. I noticed some loyal customers that were spending over $200 per order, would come back after a month the promotion had ended and ask for the same discount!

By: Complete Savings

Complete Savings — Wed, 28 Jan 2009 08:09:09 +0000

Hi,
Thats true. Discounts in a long term doesnt serve the purpose. They hit your bottomline heavily.
Besides, consumers tend to feel that overly discounted products lack in quality.

By: Nina

Nina — Sat, 17 Jan 2009 21:20:08 +0000

Thank you for this great article. This is so true. As a manufacturer and retailer of a high quality item that is made from scratch per order, I realized this after having promotions/discounts. I noticed some loyal customers that were spending over $200 per order, would come back after a month the promotion had ended and ask for the same discount! And guess what? The total of their new order was less than their previous orders!
Some even said “I’ll get 2 items ‘if’ I get a discount…” Almost like a threat or a warning! Learned my lesson. Don’t discount quality items that are your main items. Discounting items that are seasonal and you want to get rid of inventory might be Ok, but your main product should not be discounted as it really changes the way your loyal customers look at your brand.

By: Paul (from Idea Sandbox)

Paul (from Idea Sandbox) — Fri, 24 Oct 2008 08:35:32 +0000

It is possible, Marvin that you aren’t charging enough.
Folks may wonder what quality they could be getting if they get all of that for only $50?!
Another challenge may simply be that people just don’t want/need a “lunch and learn” to get their cabinets done.
Ask a few of your former clients… and ask future clients what they really need.
Is it that they want to cut costs by building it with you? Do they lack the imagination to see how it would look finished (and worth the investment)?
Just stuff to think about. Best to you Marvin!

By: Marvin W. Towler

Marvin W. Towler — Tue, 23 Sep 2008 18:23:27 +0000

I’m a kitchen designer that advertized a 2-hour Design-a-Kitchen Seminar. It included three projects workbooks, lunch and design solutions. I charged $50.00.
After no-one signed up I started second guessing whether my time, wookbooks and advice should be free to get people in the door.
After seeing these comments I don’t feel $50.00 is too much to ask for. I’m selling custom cabinetry that if you can afford to buy you can afford $50.00.

By: Mary Jo Finn

Mary Jo Finn — Sun, 31 Aug 2008 17:44:24 +0000

From my past experiences, I have found that everything will sell if it’s priced right. I think most shopper’s these days are savy enough to know the value and price before they make their selections.

By: Paul Williams

Paul Williams — Tue, 19 Aug 2008 06:39:49 +0000

My advice as a marketer is to put yourself in the shoes of the potential buyer.
Does the price cut affect the way you feel about the product and/or brand?
In our discussion here we’re finding legitimate business reasons for discounting… are there are loads of legitimate reasons…
However, regardless of sales justification, does it diminish the perceived value?
If YES, then discounting shouldn’t be your approach. Find an alternate way to get rid of the product than putting it on sale in your location.

By: Elaine Fogel

Elaine Fogel — Tue, 19 Aug 2008 02:13:53 +0000

Excellent discussion. I think there are many good points made here. However, I also think it’s hard to make blanket deductions about a lot in marketing (with few exceptions). Doesn’t it always depend on what the product or service is and who the target market is?
Things like commodities will fluctuate in price depending on supply and demand, stock market activity, weather, etc. so gas prices and food products change regularly.
New technology makes older models less attractive and eventually obsolete, so sales are common when new products are introduced.
Then there are loss leaders, reduced to bring consumers into a business where regularly priced goods are often purchased.
I guess what I’m saying is that there are different circumstances for lowering prices, and not all of them will necessarily affect the brands themselves.

By: Abhi Vyas

Abhi Vyas — Mon, 18 Aug 2008 20:54:15 +0000

Great article Paul. I think the effect of a price cut will be determined by the elasticity of the product in question. There are several economic models which can calculate the impact of price cuts on their demand. No doubt, price cuts do hurt brand image in the long run.
Some brands never require price cuts or promotion. We will never find GE offering promotions on its turbines; — Buy 1 turbine get 1 free.
I think it all depends on the positioning of your brand and consumer’s expectations.