Reducing price to push sales of a product or service is a tried and tested strategy that works in almost all types of markets. However, a sudden price drop may sometimes have an opposite effect as the buyers may perceive the drop as a reflection of the actual worth of the product.
Wikigains explains that you can prevent this by introducing an appropriate discount pricing strategy that offers a limited price drop for a few privileged buyers. This section of buyers may be the ones who respond quickly or repeated/ loyal customers.
The right strategy would be to pitch the discount as something available for a limited time only or available exclusively for the early birds, loyal customers, etc. For example, by issuing coupons as a part of their discount pricing strategy, companies can temporarily reduce the price to push a new product/ service into the market. It can also be used as a means to stimulate slow sales.
Let’s discuss them in detail.
Include Messages And Show Your Excitement For New Products
Use the right ad copy to express your excitement on the launch of a new product or service. Let the customers know that you are excited and happy to add a new product to your line and you wish to share your happiness by offering discounts.
The coupon codes may read ‘WELCOME OFFER’ or ‘NEW10’ etc. to ensure that people know why you are offering the discount. This will also help the products gain recognition in a crowded marketplace.
Using Coupons As A Means To Introduce Products/ Services
You must bear in mind that no single discount strategy or pricing works for all products or situations. Thus, the strategies employed may differ according to the products, their sales history, and relevant market.
Wikigains says that one of the biggest reasons behind issues coupons is to helps products/ services pierce competition and get noticed by the prospective customers.
Wikigains Shows How To Boost Sales For Products With Declining Sales
If a product in your company has a long history of declining sales, a coupon code may work as a stimulus to revive sales. There are two approaches to handle this situation.
You can issue coupons or offer a deal with a message that says the price drop is for a limited time to beat the competitors who are trying to capture your market with cheaper products. It sends out the message that the price drop is only for a specific period.
Another approach is to offer a coupon discount when a product is reaching the end of its sale cycle. You can offer a heavy discount to get rid of old stock by saying ‘get it before it’s gone forever’. It enables you to clear your old stock and also make your customers happy.
Coupon experts from www.nexusonline.org.uk believe that by using promo codes correctly as a part of your discount pricing strategy, you can not only increase sales but also boost your brand image. However, you need to have the right plan and strategy in place to ensure that the coupons benefit your business and reach out to the target audience.