Hello Community,

Need your advice. We have started on our website (TmplatesFlow) Christmas Company. To increase number of customize orders we have made a discount for all our clients. All customization services from 26.11 till 25.12 will be 10% lower.

So what I want to ask - first one - is 10 % normal? Should it be higher or lower? Because I have chosen 10% by chance.
And the second question is the following: how much will it increase the number of clients? Do these programs work normally in the internet? Anyone has tested this on his web-store?

Thanks in advance.

We have started on our website (TmplatesFlow) Christmas Company

Bit late in the day for it, but hey ho. Or is this for Christmas 2008?

first one - is 10 % normal? Should it be higher or lower? Because I have chosen 10% by chance.

So you didn't bother analysing the costs to see if a 10% discount was viable and still make a profit.

how much will it increase the number of clients? Do these programs work normally in the internet? Anyone has tested this on his web-store?

Who knows, have you set up some tracking to see if it brings in more business

Thanks

Bit late in the day for it, but hey ho. Or is this for Christmas 2008?

Christmas 2007-2008. It will be in a month - why is it too late?

So you didn't bother analysing the costs to see if a 10% discount was viable and still make a profit.

could you explain this in other words?

Who knows, have you set up some tracking to see if it brings in more business

google analytics + our internal sales tracking

For Christmas sales you need to be ramping up in August and have been planning it from April/May.
Starting at the end of November puts you way behind every body else's marketing .

You said you had guessed at 10%, what would losing 10% of your revenue mean to the business?
Would you still make enough to cover costs?
It's no good giving discounts to get business if that business actually cost money!

Originally Posted by chrishirst

You said you had guessed at 10%, what would losing 10% of your revenue mean to the business?

Ok. I hae chosen sum 10% - as it it normal part that we may give away, and stay in plus.

Originally Posted by chrishirst

Would you still make enough to cover costs?
It's no good giving discounts to get business if that business actually cost money!

We may even try to make bigger discount. (Just stay on 0 by paying designers team for their work, or even to give more than we will get) only to attract clients.

I know that such tricks sometimes are giving nice results.

The percentage of discount is not important you just change the discount from 10% to 50% for various products, enjoy minimum profit and maximum rotation of goods.....................

It's no good giving discounts to get business if that business actually cost money!

Dude, you're so dumb! Everyone knows that losing money on a sale doesn't matter if you can make up that loss in volume. Losing money x lots and lots of sales = making lots of money. I always have to explain EVERYTHING to you.

Seriously, this is a rather strange question to ask. The answer is that "it CAN work, but it depends on a number of factors".

1) Whether you still make money (no point giving a discount just to break even or lose money; I don't care what "loss leader" theory states, you almost always get screwed, particularly if you only have a small number of products and services for sale.)

2) Is your business a "one-off" sort of business, or is repeat business common?

3) Are other people offering the same sort of discount?

4) Do you really need to offer the discount in the first place?

5) How low can you go and still make a comfortable profit (a profit that could cover any overages due to human stupidity, for example)?

And so on and so on.

Ultimately, the only way to find out the answer to all these questions is simply to float your idea and see if it works (which it appears you already have and today's the last day. I'm only responding because rose77mary77 gave such a silly answer that someone had to inject some common sense into it.)

Originally Posted by ADAM Web Design

I don't care what "loss leader" theory states

It's a lot like bait and switch ... it only applies when you have other items you can sell above retail to make up for the loss. There are a lot of stores that will sell you a high end camera body at cost and the lenses for 30% or more above market rate. For new users who need a lens and don't know what it should cost, it must be pretty effective.

Adam, thanks for bringing the light on this topic.

Yepp, discount period have already ended and unfortunately it has not given expexted results. why? any suggestions - just want to make some analyze for myself.

I think you can provide more package instead of discount
E.g.
- Buy 10 Free 2
- Buy 5 and you can get 3 more with 50% dicsount

giving them a space to chose their package

You can read my blog
http://press.tonghuat.com

I think the last part can giv you some idea

ok, thanks - reading a blog and thinking forvards for some packages.
that might help

One thing that has been overlooked. You can lose money on one sale if it leads to more money on the next.

If a 10% discount loses money on that sale, but it creates a loyal customer who continues to buy for years then the end results is some pretty good profit.

Giving things away at some loss is a common way to attract new customers that can later be profitable.

Having said all that I have a hunch none of the above is going on here.