Pricing is always a touchy subject, made even more so by the recent recession and the new kind of consumer it’s created. Customers have a new-found lust for deals and bargains, and businesses are left fretting over discounting their prices to get them in the door. But, as BusinessWeek columnist Steve McKee discusses, when is it worth it and how do you do it right?
According to McKee, the short answer on when to discount is “never.” It deteriorates your brand and digs a hole. But, there may be times when you may feel as if you have no choice, and in those cases, he offers this advice:
•Have a set time to run the discount. You want to spur interest in your salon and its services and products, and a good, brief discount can do that. But don’t keep turning to that tactic or you’ll train consumers to never consider you unless you’re having a sale.
•Give credibility to your discount. Have you considered special discounts to certain professions (teachers, firefighters, military)? This not only elevates your salon’s reputation, but keeps you from looking like another small business desperate to move product/increase sales with a sale.
•Have an objective. Know what you want to achieve (and how you are going to measure that achievement) and consider if discounting is the way to get there.
For more tips on discounting, click on the source article.
BusinessWeek: How to Discount (If You Insist)
