Before you offer discounts on anything, you have to ask yourself (and answer with clarity):
What is the purpose of this discount?
Am I looking to raise capital?
Am I looking to move inventory?
Am I looking for new customers?
Or am I offering existing customers a value package that they will appreciate?
Your answers may be more than one of the above.
But whatever your answers are – don’t kid yourself as you go through this process.
Once you understand the purpose, then you have to ask yourself:
What are the potential ramifications?
Will this answer my present customers or make them happy?
Will this cost me customer loyalty or create it?
And finally, there’s a measurement piece – after the discount hasbeen offered and the clamor of activity has died down – you have todecide if it was worth it or not.
Did the outcome fall below, meet, or exceed your expectations?
Maybe a better measurement question to ask yourself would be:
Are you willing to do the same thing next year?