Happy Valentine’s Day.
As I mentioned yesterday, my wife and I had our celebration yesterday. We made a nice dinner at home and enjoyed each other’s company - and the little one’s.
This morning I woke up from a DEEP sleep and it was quite cold outside. This combination usually ends up with me sitting on the recliner and reading as opposed to working in the garage first thing - which is exactly what happened. So no cigar to report on today!
As for what I wanted to touch on in today’s session was pricing and running sales:
So what I do around here is offer MSRP pricing on singles and gradually discounts on packs as quantities increase. I also send out a weekly deal on certain brands (sometimes sitewide). This deal is usually in the 15-20% off range. When I started the site I did things a little differently. I priced every product, in every quantity, lower than I do now. My thought was - offer competitive pricing everyday. However, my sales were not as “impressive”.
I changed this pricing and sales model after about a year, though sometimes I still wonder what the correct answer is.
Do you prefer lower everyday pricing on all products with more modest sales, or regular pricing on products and larger sales?
On one hand - people love everyday low prices. That, I believe, is great for the customer that visits the site often and browses. However, the customer that doesn’t browse may only visit the site when they receive an email promoting a notable sale. A 10-15% sale may not entice them enough to visit the site to see that it is 10-15% off the already 5% lower price. However, if they saw an email touting a 15-20%* sale off of a full priced item - they may be (and I believe that they WILL be) more inclined to purchase.
*I know the savings aren’t the exact same in the examples, but they are close enough for this example.
Anyhow, take care.
-Trevor