I read Nancy’s （https://blogs.ubc.ca/huangnancy/）called “The apple Pricing Game”  and I found it is very interesting that she picked out how Apple differentiate itself from other electronic brands.  It is true that we rarely see Apple’s product on sale, even they have sorta promotion, it is basically like at the beginning of the school, they gave 100 dollar gift card to students.  Almost other brands, like Sony , they have their store in outlet, and online discount regularly. Even Apple rarely does any promotion or discount, it always maintains a good sale in the market place.   The price of apple’s products are relatively higher, people are still willing to their products. I think it is actually because of their never discount strategy makes their products stand out.

If we think about the luxury market, brands such as Hermès, Louis Vitton, Chanel, tiffany&Co, Rolex, They never have any in store discount promotion, but people still line up to buy their products.  Apple is using the same strategy here. I think if you never put your products on sale, people will just buy it when they need. In contrast, brands like, Gap, H&M, Zara, The north Face, Aldo etc.. , they often have  either store promotion, and their website constantly have on-sale products. I am not saying discount is hurting a brand’s identity.  Well, I think if customers know that your products will never be cheaper, they will not have to wait.  Customers can make up their minds almost immediately.  Whereas, if customers are aware that if they could wait for a couple weeks, they can buy it cheaper, they will not buy it right away.  Moreover, during the waiting period customers’s purchasing decisions change greatly. There is a greater chance they will find a substitute at a lower price range.   This never discount strategy reminds me about something called ” Limited Edition“，The scarcity makes it pricier.  Everything has its two sides, including the world of business.

Prices sometimes is not the main factor they customers make their decision.  If a brand can sell its products well without any discount, they should never put their products on sale.

Cited from: http://www.gettyimages.cn/showmid/6347011/BAMBUSTONE

https://blogs.ubc.ca/huangnancy/