A few years ago, I came across this article from the internet marketer, Derek Halpen. It was entitled, "DISCOUNTING IS FOR DUMMIES - HERE'S WHY (AND WHAT TO DO INSTEAD)". It went somewhat viral in a Facebook group that I was a part of and everyone was questioning if they, as an eCommerce business should ever run a sale.
As someone who has spent years in marketing and retail, I was curious - what retailer can NOT discount ever?
Well, it turns out Derek Halpern, while being a savvy service-based has never run a product-based business. And although, I'm not a fan of the sales strategy of a business like Old Navy (every week is a sale!), using sales and promotions strategically is a big asset in your business that can increase your business efficiency, cash flow and create more loyal customers.
Have a listen to the episode on iTunes or Soundcloud.
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KEY INSIGHTS FROM THE EPISODE:
- Sometimes it's necessary to run a sale
- Sales can help you move stagnated inventory and free up cash flow
- Sales can be used to reward loyal customers
- A limited time promotion can make your seasonal business more agile
- Use promotions and sales strategically and try not to train your customers to expect them.