If you run special offers at predictable times throughout the year, you need to be aware of the full cost.
It’s always more than the 20% or whatever your discount is.
That’s because there are two types of loss when you discount a price or fee… not one. And the second loss, which most business owners are totally unaware of, can lose you and your business an absolute fortune.
The first loss you probably know
By discounting at predictable times, you train your customers or clients to wait. So that’s what they do. They hold off making the purchase they would have made at full retail, for the special offer they know you’ll run. In these cases, you only lose 20% on every purchase that customer makes of that predictably-discounted product.
You already knew that.
The second loss is much bigger
This doesn’t happen