Why Discounts Are a BAD Idea!

In one month, Apple will unveil the new iPad in what will easily be the year’s biggest (so far) buying frenzy. It seems everyone WANTS, NEEDS, HAS to get their hands on the latest gadget from Apple the day it comes out…before the price drops.

Yeah, the price will drop. Apple knows you want to beat the rush and are willing to pay the most, so they don’t discount their latest and hottest products. Remember the long lines for the new iPhone? The long lines for the new iTouch? The long lines for the new iPods (okay, that was a while ago). The newest, hottest products are never discounted and they sell out because the perception is put in everyone’s mind that they are valuable. Watch how cheap you will be able to get a Kindle in a couple of months.

Conversely, the more valuable the product, the less likely the discounted price. Can’t you just see the ads? “Pick up your new BMW today while the introductory prices are in force.” “Be the first to purchase a Yumi Katsura wedding gown during our special discount days program.” “Dr. Turner offers brain surgery for 50% off at his new practice!” Yeah, right. Line me up for that one.

An author friend of mine just introduced her book on the market. To promote it she offered free copies to the first 50 people who answered an online survey. Then she sold it for an “introductory price” on her web site to sell more. The price was reduced. Her problem was, by discounting the book price, she de-valued her product. They aren’t selling well so far. And the price can only go…..DOWN. She will never get full price for it after introducing it at a loss.

Do you want to know how to add MORE value to your product or service?

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