Most businesses practice price reduction during this period, but some of them, in fact, inflate prices beforehand and then get them back to normal when Q4 comes, although they promote it as huge discounts. If you remember, JC Penney was practicing this approach for some time. Customers new about this scheme and some were disgruntled, so the company management decided to stop doing these “sales” and just keep prices at their normal level all the time. What do you think this move brought JCPenney? More revenue? More customers? Well… in fact, it brought it $985MLN loss.
What does this story mean for you as an entrepreneur?
That people love the psychology of discounts and deals. That’s why Black Friday season is so hot for most businesses. I doesn’t mean that we recommend inflating prices and then giving “discounts”. On the contrary, we are for fair play. What we recommend is not to miss out the opportunity to give your customers what they want and grow your revenue. But since everyone else is eager to do the same, you need to craft a really special offer to stand out. The best way to do it is to take human behavior into account to increase the value people should see in your product. That’s why today I’m sharing with you a few tricks you can try applying.
Give sequential discounts. For some reason, people love segregated gains, that’s why 30% off + 20% off work better than 50% off. Some entrepreneurs prefer giving the second part of the discount during checkout, others create a pop up message or send it through a chat bot installed on the website. Get creative and find your way.
Even though Black Friday is a time of big sales and a lot of companies attract users by giving discounts, don’t forget about the story behind your product and the emotional part of the creatives and ad copies you use. Give more reasons to buy your product than just a reduced price, increase the perceived value, and you’ll be surprised how much more profit you can generate.
Hope you’ll craft the best offer and skyrocket your sales and profit during this Q4!
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