Is Discounting A Good Idea for Your Business?

When you hear “discount” or “coupon,” what is the first word that comes to you mind? Is it exclusive? Is it valuable? Or is it cheap and shoddy?

Jos. A. Bank has built a reputation as an upscale mens clothier. Traditionally they are known for their high-end shopping experience for executives. But competition from Men’s Warehouse and a host of bad economic decisions have forced them to re-aklign their marketing in the past two years. They now run sales and discounts on a weekly basis. They send emails advertising specials with tags like “Largest Clearance Sale Ever! New Markdowns Taken!”

Really? What have they become? A discount suit shop.

You start off with discounts and you will DE-value your perception.  Ask any savvy marketer.

Does Apple offer opening day discounts when the latest gadget is released?  NO!  And we line up around the block to buy it immediately… before the price goes down.  Authors know that when the book goes on sale, it is history.

Increase the price and cost and you will increase the value. It all depends on what you want to be known for in the market… and at what level of value.

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