Discounting your Brand
Paul Williams over at Marketing Profs Daily fix just wrote a fantastic article detailing how Discounting Prices erodes your brand. Definitely worth the read.
But if you don’t have time to read the article, here’s a quick summary.
Basically, Williams argues that offering deep discounts and huge markdowns changes the customer perception of the value of your product. If you slash the price on new car from $17,000 to $14,000, the customer views the vehicle as $14,000 car. Even after the price goes back up, the customer will still view the car as a $14,000 car, not a $17,000 car.
Williams say the best way to woo customers without endangering your brand is to offer more value with your product, like lifetime tires, oil changes, etc. This will attract customers without hurting your brand.
August 15th, 2008 at 9:25 am
[...] Original post by adam [...]