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Becoming a pro at promotional pricing

July 13, 2011

Although the aim of discounting prices is to create traffic during slow periods or to fill up an empty column, it can end up affecting your bottom line if not conducted properly. Here are a few tips to help avoid the pitfalls:

• Ensure your promotional pricing is generating new business and not just giving existing clients a discount, without changing any behavior.

• If you are attracting discount seekers with your offer, determine if they are staying around once the offer expires.

• A phenomenal response to a promotional price may indicate a long-term price level opportunity (e.g. a junior stylist working at your promotional price).

• Make sure to track all missed opportunities. Perhaps what you need is more staff on certain days instead of more customers on others. Create a demand forecast to assist you with planning your pricing and scheduling staff hours.

Increasing your prices or conducting a promotional offer on your services does not need to be wrought with uncertainty and stress. Pricing strategies are all about mathematics and statistics. Do your research, plan it well, execute it properly and you will reap the benefits.

From → Positioning, Pricing

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