Ever felt ripped off when you see discounts for new customers?
As a regular customer you don’t get that warm and fuzzy feeling when you see these offers do you?
Don’t get me wrong discounting the price of your products or services as a marketing tactic can increase your sales if it is done correctly.
It used to be the domain of larger businesses to only provide offers to new customers.
Unfortunately it seems to be gaining some momentum with small businesses and freely promoted on blog posts and websites.
The problem is because they are focused on gaining new people they are forgetting the loyal ones forking out money each month. That is the main problem if you sell products or services based on a weekly, monthly etc time period.
It is tempting to have a lead in price to get new customers as it has been done successfully for decades. However I think it primarily works when you offer that same discount to all customers during that time period.
This means no one is left out.
Of course you do have to do your sums to see if it is worthwhile, otherwise you may have to think of something else to offer new customers.
In this article I am only talking about products or services that are sold on a continuing basis, not a one off purchase. There is always the risk you take that what you bought this month may be on sale next month.
I know some will say the price discount is only for a short time and that a few may get upset, however I have to wonder if it is worth it. Especially when some are eager to vent their displeasure via blog posts or twitter.
Ultimately though it is for you to decide what you do with your business.
Have you ever had this experience with a small business?