The holiday season is a shopaholic’s dream comes true. Every year retailers run amazing deals in hopes of luring shoppers who have long Christmas lists to fill. As if Black Friday and Cyber Monday weren’t enough, more and more brands are turning to daily discount and flash sale websites to promote their business throughout the year. Sure it’s a bargain for consumers, but is it a worthwhile deal for brands?
There are arguably many advantages to steep discounting. It can bring in new customers and allow businesses to get rid of excess inventory. For business-to-business companies, offering a “deal” on a new contract might be what gets your foot in the door.
We can’t argue that new business is great, but wouldn’t you rather have new customers who value your offerings rather than a flock of them who want cheap goods? A good client knows a good product. She also knows that quality services and products will cost a bit more. Constantly running promotions is a sure way to dilute your offering’s [and subsequently your brand's] worth.
Promotions aren’t all bad. Consider using them more wisely. Perhaps offer discounts to reward valued customers. If you want to run a promotion to attract new customers, consider a giveaway versus a price cut. Alternatively if you’re willing to lose money to gain clients why not instead invest dollars into smart marketing that will bring new customers without the cost of devaluing your brand.