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Discounts: yes or nah?
Recently I've noticed that almost every product has a discount offer. I stopped buying for the full price at all 🤯
Example from yesterday: I had a free version of the product and after a week they offered me a 50% discount for the premium plan. I even wanted to buy it for full price, but then I accidentally checked my e-mail 😅
I'm curious now whether all these discounts spoil customers. Probably users even don't buy if there's no discount.
Do you make discounts for your product? What are the results?
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@gabriel_shin I think it's more about B2C
B2C customers want for an instant discounts, while B2B is more about partnership and mutually beneficial conditions
We`ve made discount 50% and it works!
We have one third of purchases that are made with discount.
We think because this is additional trigger.
I do find myself trying to look for deals. I suppose the mental process is how can I get more value for less. The really interesting part is when there is upselling with discounts, that often works. Get what you want for X but for an extra 50%, get twice as much. Then you think, well that averages down the cost per value.
Hi Sveta,
we try to avoid giving out discounts publicly. Nevertheless, in negotiations we, of course, would consider giving discounts and like to work with free months in the beginning for a longer contract period. But this is specific to B2B and our specific niche.
I think it very much depends on what kind of customer base you have.
Discount is an illusion for me.
Product maker's got a price in mind and decided to put a double price tag.
A product worth 40$ got a price tag of 70$ and over that, you get 50% off. So eventually you pay 35$.. which was the exact price in the maker's mind.
Win win for both
@rajanverma agree, that's a common sense. But I think even if a customer understands it, it still gives positive emotions!
The customer acquisition process starts with building awareness and interest, and discounts are a proven way to do just that. Consumers are attracted by discounts and tend to share them via word-of-mouth—an efficient way to reach new customers while keeping customer acquisition costs in check.
@basv yeah
I made a free version and then another version with more features so my customers get to choose the free and if they like my product enough they can go for the paid version with a discount and I made lil money on that
I can't afford discounts ;)
I think it's good if you need another reason to get people to act immediately, otherwise I'd like to avoid competing on price tbh.
@nafetswirth You're an honest man, Stefan!
There was a good response, so I just quote it for reflection "A product worth 40$ got a price tag of 70$ and over that, you get 50% off. So eventually you pay 35$.. which was the exact price in the maker's mind."
I always look up for a promo code.
I'd imagine some services set their prices a little higher than they want, then offset it with promo codes and holding promotions or having a promo/discount code out at any given time
well read these stories where some genuine CEOs guy fired over removing these inflated prices and keeping real one for the sake of truth and what they got is kick in butt from job.
https://www.cnn.com/2022/03/05/b...
They work - but it depends on how you structure it. We've done a few things.
1. We give a discount in exchange for something. For example, an email, signup, testimonial, etc. "you bought this product, here's a discount on that product" for example.
2. Reverse discounts also work. Instead of 50% off today, we say "buy it before the price increases next week." The fear of losing the current price is often more compelling than a discount out of the blue.
3. Exclusivity helps. "A discount for our most active members" or "you've been with us for 1 year, here's a discount on a product." Discounting is a big risk because it cheapens the brand, so creating exclusivity, so only certain people get the discount makes people who do not get it feel a fear of missing out and want to participate.
I love this stuff so let me know if any questions anytime! Good luck!
I am in favor of discounts from both the customer's and the seller's point of view. Discounts are a good way to promote your products and help to engage different classes of customers at different times. Usually, discounts and promotions give many benefits to the sellers.
I think the biggest risk with discounts is that you might be attracting a customer who doesn't have a willingness to pay full price/or your setting their expectations at a lower price. May be hard to get them to stick long-term at a higher price.
It should be such that both buyer and seller think that they got a deal but could have done better.
That little bit of satisfaction and thinking they could have done better is a sweet spot to define doscounts/pricing.
What do you think @basv ?
Yes. I also use the discounts, the customers love it. For the more good tips about it I found here https://biztoolspro.net/how-do-c.... It may be useful.
Each product has its own buyer. One person is stingy and will always look for a discount. And another buyer is looking for a quality product
https://www.pitchero.com/clubs/f...
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