Promotional pricing is a stupid thing for
If you have never encountered this idea before, you may be taken back by this fact, but it’s true.
The idea of discounting, and using coupons, etc., is derived from the simple economic principle that quantity demanded increases as prices fall.
This is nothing more than the fact that when things are cheaper, people tend to buy more.
But a problem arises when we start playing with people’s expectations.
See temporary discounts train customers to expect discounts again in the future.
Many companies fall so far into this that customers become virtually uninterested until there is a 50% off sale. My wife does this exact thing at a popular children’s clothing store.
I think you should stop conditioning your customers to anticipate reduced prices.
It’s about your brand.
Promotional pricing, especially when offered to a very large audience, creates an impression that discounts and special offers are part of a brand’s ethos, and that rather than signing up at full price, you, as a potential buyer, should wait until the next promotion launches. We found that a large swath of the SEO community viewed Moz this way after our ongoing offers (usually two to three every year). If you’ve ever stopped yourself from paying full price for a brand or at a store because you suspect there’ll be a sale in the future, you’re familiar with the
mind-set .
-Rand Fishkin, Lost And Founder