In comparison to the year 2020, we’ve made a lot more progress in a few months, but we’re still feeling the repercussions of the previous year, not to mention all the geopolitical events that are shaping the world in this new normal. From the Evergreen container ship blocking the Suez Canal to the ongoing reliance of many families on stimulus checks, we are still a long way’s away from getting back up to speed and re-establishing the preferred level of stability in the global economy.
On that matter, many businesses are still struggling to stay buoyant in this new normal marketplace, and while the situation has improved by a large margin compared to the start of 2020, not all companies have been fortunate enough to see the light of today. One such problem is trying to generate immediate demand in this consolidated online market with prominent names and big businesses dominating the scene. So, to help alleviate this ongoing issue, we’ll be going over some quick tips on discounting strategies that companies can use to create demand around their products.
Why Implement Discounts In The First Place?
Although it will hurt your net profit margins to put discounts on your products as opposed to selling them full-price, you lose a lot more valuable time and resources by having precious inventory take up space in your warehouses and not be in circulation. Your company will be holding up the supply chain process, and you’ll be putting your cash flow at a standstill and might even sow the dangerous seeds for bankruptcy. So, to avoid these problems from realizing, it is in your best interest to implement discounts to keep inventory and money moving.
#1 Use Events & Occasions To Your Advantage
A good place to start with your discounting strategy is utilizing events & occasions to your advantage. From well-known holidays like Christmas or something a little more unique like welcoming Spring, there exist a myriad of calendar dates at your disposal. All you need is the creativity for a campaign and knowing which event or occasion would match your product and target audience best. In fact, you can even start a new gimmick wherein every first Saturday of the month is a discount and savings day!
Create Brand Hype: An important factor behind a successful utilization of events & occasions is the capacity to create brand hype and put your name in front of potential customers. We recommend creating video ads that score highest in engagement and have them take up residency in YouTube, Twitter, Instagram, and many other social media platforms that your target audience uses on a daily basis. And, if you can land a spot on busy streets, print advertising through customized banners is still an effective way of creating brand hype and putting your name out there.
Use FOMO: While discounting may seem like a numbers game, a huge aspect of creating demand also falls under psychological games and using FOMO to your advantage. You want customers to feel like they’re missing out on a great deal by passing up on the discount period so that they’re more likely to buy in bulk or big-ticket items. For example, using the color red to evoke a sense of urgency and big bold numbers are but some of the incremental details that accumulate and increase demand.
#2 Sweeten The Deal For Your Customers
A great way to make discounts look even more appealing to customers is by sweetening the deal and making it feel like an opportunity of a lifetime. Sometimes, the list price of a product alone doesn’t cut it with a lot of people. So, you get to them by paying attention to other aspects of your product that they might be interested in, such as the money they save on shipping fees or maybe extra incentives to buy more than one item during the sale.
Free Shipping And Lucrative Bundles: Whether we like it or not, the online marketplace is the new normal’s shopping mall, and it has transformed into a universal battleground where companies from across the world outwit and outmaneuver each other with pricing, value, and advertising. And, one excellent way you can create immediate demand for your products is through free shipping and bundle deals. It may seem like an obvious answer, but many companies undervalue how effective they can be at moving inventory.
#3 Partner With Influencers And Tap A Wider Audience
Last but not least, we strongly recommend partnering with influencers so that your products reach a wider audience and you can tap potential customers that you wouldn’t have otherwise. From up-and-coming YouTube stars to TikTok viral sensations, there’s never a lack of influencers with a solid following that can help put your business right in front of millions of people. And, with their support and vote of confidence, their fans might even convert into loyal clients in the long run.
Be Smart With Your Discount Strategy
Discount strategies are not novel concepts, and they’ve existed way back since the trading and barter days. However, now that the new normal has emphasized where customers are surfing and browsing, we should also learn to adapt and align our techniques with the changing of times. So, use the simple guidelines mentioned above to curb and be smart with your discount strategy.
Meta title: Building An Effective Pricing & Discount Strategy
meta desc: Discounts are among the best ways of moving inventory and creating an immediate demand for your products, but many companies and businesses tend to use these strategies haphazardly. Keep reading and find out how you can master the art of discounts and pricing.
