Marketing Mistake #10 - Falsly thinking discounting will attract customers like flies

There's a really disturbing marketing trend going on in business right now. And it's rampant. This marketing disease has literally infected a good number of businesses since who knows when. Among the most serverely infected is the retail industry.

Holy cow. These people throw discount stickers on every item that moves. It's so out of control that these discount "stickies" are in every nook and cranny of every sane retail store in South Africa. Sometimes it's so bad that you can't even see the damn pricetag on the watch you intend to buy.

What's the problem here?

Every retail store out there is using this very 'strategy'. It's outdated, old school and frankly every single one of your competitors uses it. For some reason, most retailers think that pure price slashing can boost sales.

Wrong! It all depends. Lowering your price can increase or decrease sales either way. When you lower price you have to dramatically get more volume. And more volume means, more salespeople, better sales training, more storage space, more overhead and more cost!

What's really funny is the scientific study of Robert Cialdini who proved that raising prices can get you more sales. Ironic isn't it? Cialdini studied a jewelry store who accidently doubled their price over the weekend. When the boss came back, (and realising the clerk's "mistake") he was floored when he saw that almost every single piece of jewelry was sold out at double the price!

But think about it. Think about society in general. We value things we can't get. Tell a kid he can't get a toy and watch his greedy little eyes grow in anticipation. Say to a woman your in a relationship and watch the gleam in her eye flash by. It seems to me the more 'unavailable' you are the more people want you. In fact this one time I wore this fake wedding ring and this stunning blond walked up to me and she said ...

(cencored) xxx

Moving on ... People want what they can't have (point proven). Therefore raising your price, decreasing accessability and so on can boost the desire for your product.