Entrepreneur | Posted on
Increase the price of the product and then label it with a discount offer—that’s how sale seasons work. And they work remarkably well, bringing thousands and millions to the retailers and e-commerce.
In fact, offering discounts has emerged to be one of the top selling tactics that are even taught in sales courses. When you offer a discount/offer on a product – a limited period one at that – you psychologically trigger the buyers. The customers get into that FOMO mode—the Fear of Missing Out. Even when they don’t necessarily require that product at that time, they think that they might miss this low-cost opportunity; so, they eventually buy the product.
(Courtesy: SneakerBaas)
Sellers don’t sell at “cheap”. Even those who offer “80% discount”, they still manage to cut a decent profit. All they have to do is double the selling price—and, with the said discount, they are still left with a 20 percent profit. When this small profit stacks up, their wealth grows significantly. (The strategy is called retail arbitrage where the volume of the sales make up for the potential profit you’re giving up by offering the product at a low price.)
That’s how the sale seasons fool customers.
In addition to that, the phrase “sale season” has been branded so smartly that every time it pops up, the customers automatically believe that they will be getting a bargain deal. It’s called conditioned reflex. The customers are conditioned so that when they hear “sale” “discount”, they rush to make a purchase without caring about the actual worth of the product.
(Courtesy: Think Kayak)
Also Read:-Why iPhone sales to fall for first time in four years ?
It’s fascinating how consumers are now getting gaga’d over the zero-sum sale. It’s really fascinating how almost all of them really believe that they are getting discounts of “80%” and “90%”.
Really? If sellers are selling at such cheap, how are they even living? How are they sustaining their business? Who is paying for their large banner advertisements everywhere? Who’s paying for their ads on newspapers? Think people!!!
Check the price online. And then go to your local store. Find out the difference. You will realize how sale seasons fool customers.
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