Simon Harris

Simon Harris

Wednesday, 31 October 2012 14:21

Should I get in early with Christmas discounting?

I’ve read a lot about how consumers increasingly wait for last minute deals before spending on Christmas presents.

 

Should I be discounting now or is it wise to not get into a price battle?

 

There will always be a percentage of consumers willing to hang out for a bargain. This does, however, depend on the products/services you are selling.

 

The more generic the product/service the more you will compete on price i.e. air fares and hotels. In order to not compete on price, you must have a unique selling point (USP) or be operating in a specific niche market.

 

If this is not the case then you need to differentiate yourself from your competitors. You could offer free delivery, delayed payment terms for larger purchases, buy-now pay-later, add on items, or guarantees over and above anyone else, such as a 200% money back guarantee.

 

One of the ways I help my clients differentiate is to have them survey their clients to find out their frustrations when buying products/services in the same category.

 

Then we build a service or product guarantee around solving those issues. This really helps us to charge a premium rather than having to discount.

 

So, if you have to discount then you are selling a "me too" product/service that is undifferentiated and something that I can buy anywhere, naturally I will buy on price.

 

Stop discounting and start to find ways to be different from everyone else selling this product/service.

Simon is the managing director of the Business Coaching Centre, which represents coaching program ActionCOACH, based in Sydney.

 

He has 27 years of sales and marketing experience in four different countries and was named the Global Coach of the Year in 2003. http://www.theministryofsales.com/


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