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18 January 2011

Sale now off?

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Andrew Davies
Editor Andrew Davies asks when discounting should enter the sales process...

As we approach the end of January I thought it might be worth getting your views on sales and discounting in general.

Increasingly, I've noticed suppliers and manufacturers getting more and more frustrated with retailers' willingness to instantly knock 10% off sale as soon as the potential customer shows any kind of objection.

Not all retailers do this of course, but the manufacturers view is that all the hard work they've put into brand building and the retailer instantly knocking the price down as a matter of course undermines a reputation for product quality.

The retailer, of course, is the one faced with a customer wrinkling their forehead at the project cost put in front of them and for the sake of a cut in margin you don't want them walking out the door and going somewhere else.

This is different, of course, from an advertised sale or promotion where the discount is up front and designed to bring people through the door - something I imagine many of you retailers are doing right now.

So, to retailers and manufacturers, where and when should discounting be a standard business practice? Is it possible to say no? Is it a last resort or a carrot to wave at the start of the sales process?

I'll always keep your name anonymous if you'd rather I didn't identify you in print, the more candid your views are the better.

 

andrew@kbbreview.com or on Twitter @andrewkbbreview