5 Reasons Not to Discount Your Products
Everybody loves a bargain – but what benefit or damage can this bring is the question.
Lowering prices — also known as discounting — might seem like a great way to turn heads and generate interest in your fashion brand and bring in much-needed sales, and in many cases, it can do just that. But there are a lot of layers and potentially negative implications to consider when offering one.
The 2008 global recession has a lot to answer for. Aside from so many fashion brands and retailers closing doors and filing for bankruptcy, many barely survived by adopting a discounting strategy and reducing their stock inventory by heavily reducing the retail price of their products.
The discounting strategy fiasco wasn’t a one-off. It lasted for months if not even years. In fact, one can even argue that it hasn’t stopped ever since.
ONE THING IS CERTAIN – THE HEAVY PRODUCT DISCOUNTING FROM THAT PERIOD CHANGED FOREVER IT SEEMS THE SHOPPING HABITS OF THE CONSUMERS.
“Bargain hunting” is no longer used to describe an occasional activity, it has become the norm.
Some brands like the Gap are in permanent discount mode. I am not sure there is a customer left that buys any of that brand’s products at full price anymore. But, make no mistake – this is not happening because they are permanently on the brink of collapse (though a few times they have been) – this now is a brand strategy.
Appealing to the shoppers who like to know how big a saving they are making when shopping, pretending to have everything permanently on sale is just the new way of getting shoppers through the doors.
Just as some brands have discovered a new way to grow via outlet retail, the emergence of outlet retail villages and shopping malls is no longer news.
It is no longer the place where serious brands who didn’t want to damage their reputation would send old unsold stock. Now, this is just another retail channel for which many brands design and manufacture lower-priced product lines.
Episode notes:
Listen and discover:
- what are the top five reasons not to discount your products;
- what are the implications of rushed decisions and discounting not done strategically;
- what are the alternatives if you need to clear stock and make sales
Resources:
Join the Strategic Brand Positioning Program in order to learn more and work on strategies that will help you sell more, market better, and grow a sustainable brand for the long term -faster. Join here.
Read more on the topic of “reasons not to discount your products” here
Contact Method:
Fashion Insiders & Co
official website: https://fashioninsiders.co/
Instagram: @fashioninsidersco
Discover more great content on our YouTube channel.
If you enjoyed this episode, please leave us a 5*star* rating and a review on iTunes – it helps us get this podcast discovered by more listeners just like yourself. Thank you.
To submit any questions or get in touch with topic suggestions, write to us at [email protected]
