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Discount Pricing

A quick word of caution: price sensitive people tend to spend the most time haggling, they request the highest percentage of refunds and rarely value your time(1). If your business has you on the front-line speaking with every prospect and customer, complete this exercise to protect yourself and your time.

What is it?

Discount pricing is simply what it sounds like, using publicly advertised discounts on products and services as your main value proposition.

Almost everyone has at least one area where they prefer the cheaper option over the higher quality one:

  • I do not buy meat on sale, other people only eat steak when it goes on sale.
  • I do not purchase clothing unless it is on sale, while some of my friends only want to be seen with the latest purse and heels.
  • Ramit Sethi’s book I will teach you to be rich, covers countless other ways that anyone can elect to be price sensitive.

Take action

If your goal is to follow in the footsteps of bargain brand heroes like Southwest Airlines, Shop it to me & Rue La La here are a few tips to get you started.

  1. Talk about your low prices everywhere. Two examples below.

NYT Black Friday Landing Page
Rue La La Homepage

2. Pair FOMO with your bargain pricing. They go together like rice & beans, peanut butter & jelly, Cointreau & dark chocolate. If there is a limited supply, leverage FOMO by showing how many units are left in stock. Example in the image below.

AutoZone Black Friday Landing Page

3. Show the original price crossed out next to the sale price. Example in the image below.

Rue La La Gucci Sale Page January 6, 2021

4. If your discount is offered via annual savings, below is a great pricing page layout to emulate

Yac Pricing Page

Read more on this topic:

  1. Pricing Strategies
  2. Pricing Pages

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