Blog #5 Marketing: Discounts are the Norm
For almost every occasion and often when there isn’t an occasion at all, retailers advertise huge sales on their products. These “percent off” sales are so common, it is rarer to see a retailer without any sort of sale than a retailer with a sale. The main idea behind offer these discounted items is the hope that there will be some items that the customers will buy at full price.
While 25% off discounts were once seen as huge, today they may not be enough to entice buyers. Advertisements often claim 50, 60, or 70 percent discounts. Many companies use a different approach to the “percent off” discounts so their effectiveness is not worn out. One tactic is to offer a discount only if the buyer spends a minimum amount of money. Another approach is to give a discount on the second item after the first item is bought at full price.
It is important for many shrewd shoppers to feel like they “won” by getting a big discount. And despite the fact that these tactics are used so regularly, it is still effective and arguably necessary, as customers have become accustom to discounts in their everyday shopping.
And, as the Christmas season approaches, many of us will use our shrewd consumer skills to “win” the gifts we intend on giving.
http://www.nytimes.com/2010/10/12/business/media/12adco.html?_r=1&ref=business