You know that consumers who don’t want Coca Cola, don’t buy it because they’ve received a 50% off coupon. Consumers who redeem those coupons were already in the market for Coca Cola. They just paid less than they had planned to pay. So Coke not only took a hit on the profits, they also had the added expense of the coupon distribution. Huh?
You also know that buyers who buy based upon price alone, have no loyalty, and go to the cheapest vendor the next time they buy.
You also know that ‘winning’ by offering the lowest price is a never-ending downward spiral as competitors enter that race to the bottom. As Roy Williams says, “Discounting is the cocaine of marketing”.
So…why do you have one day sales and engage in expensive ‘key’ programs?
Why not train your salespeople to sell your product for what it’s worth, and help your advertisers get better results from their advertising?
In the long haul, it’s ROI that dictates what business decision makers are prepared to invest with you, not bottom feeding at the price trough.
P.S. Sorry if this offended you. We didn’t target you specifically. All of our readers received this week’s ENS on Sales.
Again, to quote Roy Williams, “The risk of insult is the price of clarity.”