It has always been a bug-bear of mine that when you discount your services on price alone you’re actually losing money and NOT making it. I always think of the hair salon that ran:
“Half price deals on Wednesday and Thursday”
The result: They were choc-a-block all day Wednesday and Thursday… and deserted the rest of the time. Are they still in business? I’ll let you decide!
But now this notion that discounting kills your business instead of building your business has been proved. The Institute of Promotional Marketing (www.theipm.org.uk) has carried out a research study into the subject. They found that:
- over using price-lead promotions has a long term damage to brand values
- promotions can play a central role in encouraging brand loyalty by encouraging early adoption
- promotions should be chosen that encourage repeat purchase not discourage it
In real English this means that:
- if you use price only promotions then folk are LESS likely to buy from you in the future
- Promotions CAN be used to encourage folk to buy new products or services
- Promotions should be chosen very carefully
But this is not something new is it? I’ve come across numerous salons that have a plethora of clients just waiting for the next money-off deal. This group of clients will NEVER, EVER buy at the regular price.
So, if price alone promotions are bad, how can you have promotions that still generate a response? Watch our free salon marketing videos to get your thoughts flowing.
Alternatively, if you’re still struggling, give us a call on 0114 263 1232.
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