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Value add is a better marketing move than discounting

Mark Fletcher
September 3rd, 2017 · 5 Comments

Discounting is lazy marketing, unless it is an end of line discount to move the last of stock you have or unless it is an event related discount.

Everyday discounting is what I am saying is lazy marketing, discounting being done so you can say you are cheaper than other retailers.

I say discounting is lazy as it is easy. It is easy to copy or beat, making it risky.

In my experience, a better approach is to change the conversation, to change how people view a product. You can do this by bundling the product with other items to create a hamper or package that is unique to your business. You can also do it by creating a multi-buy offer of a price for a single or a better price when, say, three are purchased. You could also create something unique in your business as a value-add for the product, something that the customer will appreciate, that they can only get from you.

There are other approaches you could consider too where a product is seen as being a better offer from you even though you are not discounting as such.

My point is, discounting is easy to do and easy to copy. Shoppers buying only on price are not loyal. Add value is some way and you are more likely to be remembered by a shopper.

12 likes

Category: Management tip · marketing · marketing tip · Newsagency management · newsagency marketing

5 responses so far ↓

  • 1 Ross Southern // Sep 3, 2017 at 9:41 AM

    Mark – I am having trouble trying to reconcile your post offering a completely different opinion as to the post listed below in 2016. Have you changed your opinion OR is Mother’s Day less important as other celebrations? Newsagencies that offer discounted stock should not be seen or accused of lazy marketing as you have stated. Would you suggest Harvey Norman and other similar businesses are ‘lazy marketers’. I don’t have to remind other business people that it is all about making honest money via good operations. For the majority of shoppers, the spending of their finances is paramount and while I agree with you customer loyalty is important, they are more ‘loyal’ to their purse/wallet than anything else.

    Sunday newsagency challenge: don’t keep Mother’s Day stock
    Mark Fletcher
    May 8th, 2016 · 2 Comments

    This tip is for any newsagents contemplating storing unsold Mother’s Day stock for next year. Don’t. Quit it or give it away, fast. Moving stock to the back room increases the costs associated with the stock. Quit it now. Start next year fresh.

    1 likes

  • 2 Mark Fletcher // Sep 3, 2017 at 9:47 AM

    Ross, the posts are about two totally different situations. The 2016 post is about an opportunity to sell Mother’s Day stock after the season is over, after could think you could not sell much of the stock. The post today is about discounting as an everyday strategy – it’s not smart.

    2 likes

  • 3 Ross // Sep 3, 2017 at 10:28 AM

    I accept your point and perhaps I may have drawn a ‘long bow’, however most of our life nowadays is taken up by ‘seasonal’ activities in some form : e.g. Father’s and Mother’s Day, Easter, Christmas, AFL Football (finals in particular), Australia Day, Anzac Day, Calendars and back to school to a lesser extent probably. They are all highly promoted. I suggest a lot of newsagents would have stock left over from these ‘seasonal’ promos. Do you maintain the same theory for these events? Mark please understand I am not trying to be a ‘knocker’ here, but I refuse to believe that your reasoning on discounting is a lazy way to make money

    1 likes

  • 4 Mark Fletcher // Sep 3, 2017 at 4:21 PM

    Ross, everyday discounting, as a business strategy, is lazy in my view.

    On the broader comment about all the seasons, it is important, especially seasons we create, which are more unique.

    We are in a period where last year’s seasonal stock is less likely to sell next time around.

    0 likes

  • 5 Joe // Sep 4, 2017 at 7:09 PM

    Agree Mark. IMHO we cannot compete on price alone as Newsagents, particularly not as a strategy. We will never win against giants like OfficeWorks etc not to mention with the agency lines – price is out of our control to a certain extent! The best way is to create a point of difference is through product range which services (above and beyond) the needs of the customer to give them an experience to keep them coming back. Ross your parallel to Harvey Norman is a different dynamic to the needs of a small business newsagency.

    1 likes

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