You’ve seen it before: a sale that’s too good to be true. Buy one, get one free. 50% off everything in the store. These promotional pricing offers can be tempting, but they come with a dark side.
First and foremost, promotional pricing undermines the perceived value of your product or service. When you constantly offer discounts and promotions, your customers come to expect them and may hesitate to pay full price in the future. This can lead to a downward spiral of constantly needing to offer promotions to drive sales.
In addition, promotional pricing can erode the loyalty of your best customers. These are the people who are willing to pay full price for your product or service because they value it. When you offer promotions to everyone, your loyal customers may feel taken for granted and be less likely to continue supporting your business.
Furthermore, promotional pricing can attract price-sensitive customers who are only looking for the best deal. These customers may not be as valuable in the long run because they are less likely to become loyal, repeat customers.
So, what can you do instead of relying on promotional pricing to drive sales? One alternative is to focus on building a strong brand and creating exceptional customer experiences. By providing value beyond just the product or service itself, you can create loyal customers who are willing to pay full price.
Promotional pricing can be a tempting tool, but it comes with risks. Next time you’re considering a sale or promotion, think about the long-term effects it may have on your business and your customers.
