People & Human Resources

Should we heavily discount our new product?

James Thomson /

Dear Aunty B,

I run a successful business and have just launched a new product. I want to discount the new product heavily – in some cases give it away for free as a marketing ploy.

My partner argues that I should charge the full amount and not even discount when requested. I think that is the wrong move and that we need quick wins. Thoughts please?

 

DL,
Sydney

 

 

Dear DL,

You are wrong.

I also understand you need to get some quick wins on the board and be able to use there ‘sales’ as testimonials. But mate, you sound like a cowboy with your talk of ploys and quick wins.

So let’s change the way you are thinking about sales. Instead of thinking about products, think about customers. Instead of thinking quick down and dirty sales, think long-term partnership relations. Instead of ‘ploys’, think how your happy customers can help with your distribution.

You obviously have built a bridge to your customers as you run a successful business. Think about value adding to your existing offer. Can your new product be included? Re-approach key customers who want new solutions to their problems with your exciting package. There will be enough value in this for the customer that they will pay full price. That way you will soon have your testimonials from valued customers and you are maintaining your margins.

Remember, if you think your product is worth nothing, so will your customers.

So hold your nerve and be innovative. Everyone is looking for original solutions to their problems and they will pay for it.

Good luck!

Your Aunty B

 

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James Thomson

James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review's companies & markets editor, and a former BRW editor.

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