The marketing mix, as everyone knows, consists of at least four “Ps” – product, price, place and promotion. Newer schools of thought often include a fifth P – packaging. And still others offer up more Ps – process, people, planning.
But often, marketers focus on only one – price. It’s easy to lower the price, have a sale, offer a discount and gain new revenue. When sales are slow, sometimes that’s the first thing that we all think about doing. But, there are perils associated with that philosophy – we may be “training” our customers and clients to always buy at only the lower price!
Beth Shaw, owner of Yoga Fit, has had this problem, and speaks about her discounting experience here. According to Beth, ““The customer service team is using those discounts as a way to make the sale, as opposed to focusing on the quality of our service, and so it’s a huge problem right now.”
Does discounting devalue your product or service? Maybe. Should you ever use it? Sometimes, and sparingly. But avoid the trap of always using price to sell your product.