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Discounting

Posted on April 18, 2019 by Rich under Business, Sales and Marketing

Discounting is a difficult strategy to get right, but powerful if done correctly. Discounting too much can devalue your product. Too little discounting may result in you losing out on business.

The best strategy to increasing customer spend is to work consistently on the community as a whole. A happy, growing community will feed itself and enable new growth simply by being an attractive place to join and be a part of. When people feel part of something, such as a camera club or local wildlife photography initiative, then other things tend to follow such as product comparison and trying new things. Introducing new ideas or changes to old ones is a much easier process as a result.

Underpinning this overall single strategy are a plethora of initiatives to incentivise and excite the group, and new customers, to invest in new products and old favourites. Discounting in various guises is very much a part of this. There are a number of discounting methods used and suggested by theimagefile, including tiered pricing and time sensitive offers. These obviously work according to the buying situation the customer is in at any particular moment in time.

Tiered pricing

Tiered pricing is perhaps the most common strategy across any market or product, and easily applied to which-ever strand of photography that you happen to be in. As a wedding specialist this can come in the form of providing packages based on the budgets of couples. The cheaper end might include a set number of edited images based on the main points of the day – getting ready, the journey to the venue, vows, after the vows, group shots etc. The more expensive option might include filming, pre-wedding portraits (perhaps as test shots), book for example.

Tiered pricing can also apply to new customers visiting your platforms. Buy two and get one free. Buy ten and get five free. And so on. The overall point is that if a customer is serious about a purchase, they will be serious about spending a bit more to make the purchase a valuable as possible.

Time sensitive deals

The ticking clock function whilst you have items in your basket is a clever tactic and aligned with a discount that will finish on a specific date and time, makes this a very attractive proposition. The feeling of getting a deal at a period that feels quite personal, almost as if no one else knows about it, plays into our consumer behaviour very strongly.

Seasonality also works very well in this model. As we get older, we are subconsciously very aware of special event patterns throughout the year and therefore time our buying accordingly. Approaching your commercial year based on anticipating and capitalising on these periods will enable you to provide further structure to the rest of the systems within your company framework.

Referrals

With the overall strategy of building a community around your business or product in mind, finding ways to get your customers or contacts to refer people to you is either a goldmine or a quiet stream of business depending on your view. Using discounting to drive this revenue stream can play a large part in its success. If committed customers see the value in the discount you can offer them, they will by extension become a part of your business in both championing it and bringing in new, valued customers.