In most cases, people will choose to buy a product if the discount is too good to ignore. They might not really need the product they’re buying but they’ll still buy it because the offer looks too good to ignore. In most cases -especially when selling online- this technique can greatly boost sales.
This technique is used when the discounted price isn’t that attractive or to make an offer comparable to what the competitors are offering, at least apparently.
As you’ve probably guessed, this technique is kind of in the “grey zone”. It’s true that using the original price technique can boost your sales. There are, however, many considerations that you keep in mind when using this technique. It’s not something that you should be using all the time.
There are many reasons why you should be careful when using the original price technique. Knowing why you should or shouldn’t be using it can spare you lots of troubles and irreversible damage to your brand image.
Before you apply the original price technique to your discounts, you should take the following points into consideration to make sure it doesn’t do your brand more harm than good.
What’s the Average Discount in Your Industry?
A 10% discount off a t-shirt isn’t really a big discount. In fact, it’s an irrelevant offer that people won’t even take a minute to check out. If you’re selling cars, however, this is a discount that’s worth considering.
Knowing what’s a good discount in your industry before you start applying the original price technique is essential if you want to get good results. This won’t only help you create a discount that’s appealing enough for your customers, it’ll keep you from creating one that’s “too good” and customers thinking it’s suspicious.
So, back to our example. Having a 50% off a t-shirt is good. That’s probably an offer that people are willing to consider. They get something they want for half the price, which is a good bargain. Selling t-shirts at a 90% discount though, will create the opposite effect. It makes customers think somewhat like “There must be something wrong with these t-shirts, otherwise they wouldn’t sell them at such a huge discount”.
Striking the perfect balance between offering a good deal and not sounding suspiciously cheap won’t happen unless you’re familiar with the discount norms in your industry.
The Impact of Big Discounts on Your Brand Image
Huge discounts may seem like a great idea at first. They are really tempting, and people find it hard to resist. There is, however, a major downside of big discounts, which is how people perceive your brand in general and what you’re selling in particular.
If you offer a 90% discount on your products, it’ll be more difficult for people to consider your other products to be worthy of their original price. The more you push the discount value with the original price technique, the more severe this will get.
The impact of this will be felt when the discounts are over. That’s when people start remembering you make such big discounts. They know they can buy your products for a fraction of whatever it is you’re asking for them outside the sale, so they’ll just wait.
Original Price: Advantages and Disadvantages
The original price method has its own unique advantages and disadvantages. Knowing these will help you decide whether this technique is right for your business or not.
Advantage: Making Your Discounts Look More Appealing
It goes without saying that big discounts are appealing to people. Everybody loves the opportunity to buy something they want at a discounted price. By widening the gap between the original price and the discounted price, the original price technique makes your offers much more appealing to people.
Unlike having to a “real” big discount, using the original price techniques allows you to have those tempting discounts while maintaining your profit margins.
Disadvantage: Risking Your Brand Image and Credibility
The original price technique might help you maintain high profit margins while your offer discounts on your products. What it won’t help you maintain, however, is your brand image in case people notice.
Being known as a brand that uses this shady technique can do irreparable damage to your brand image. Before you decide that you should use this technique, make sure it’s worth it in the long term.
How can Sniffie help?
In order to use the original price technique properly, you must be aware of what your competitors are offering. If you abuse this technique, your offers will look suspicious and even not competitive enough compared to what your competitors are offering.
Instead of using a manual way to do all of the required research to find where your offers stand compared to those of your competitors, you can use a tool like Sniffie.
How to use original price
- Know the actual cost of your products.
- Check your competitors’ offers to make sure your offers can compete.
- Set the discounted price that you can afford based on your products’ cost.
- Modify the original price to make your offers look more appealing.
- Used by online stores to convince buyers that their prices are a lot cheaper than they were before the discount.
- The greater the difference between the original price, the more attractive your product will look.
- Using an original price that’s not real to make your discounts more appealing can get you in legal troubles in some places.
- Don’t exaggerate the original price or the deal you’re offering might look suspicious.
- Always consider your brand image when using similar pricing techniques.