Amazon.co.uk Widgets Mosaic Marketing | Sales Promotion Agency | Discounting

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Richmond Hill Farm, Chiselhampton

OXFORD OX44 7XF

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Discounting

This technique is obviously the most common form of promotion and the one that's been around the longest - since the very first market trader offered apples on a buy one get one free*. You don't need a marketing diploma to implement a discount promotion. You can offer a % Off, Buy One Get One Free or % Extra Free. Clearly not much scope for sales promotion agency creativity here and, in our opinion, discounting is a slippery slope with the long term effect of eroding margins and raising consumer expectations of always receiving a discount. In fact, Buy One Get One Free in supermarkets has been so vilified - it has been blamed for encouraging food waste or the logical opposite outcome - chronic obesity. We like to compare discounting to a very hot chilli sauce: use sparingly.

Pros:

  • Easy to implement

  • Short term sales uplift

  • Clear stock

  • On-shelf standout

Cons:

  • Erodes margins

  • Sets expectation of discounts in future

  • Can encourage waste

  • Uninspiring