The Side Effects of Discounts
I recently shared my experience with my office supply chain's enticing coupons offers. The result was a short-term increase in my buying habits, followed by a prolonged lull.
In like manner, my Internet hosting company recently embarked on a similar strategy. Their approach was offering discounts. Depending on the offer, it would be 10 to 30% off for a specific product purchase or for a certain level on spending. Each discount offer is time-sensitive, lasting from a few days to a couple of weeks.
They have sent me 10 such offers in the past four weeks; that averages one discount about every three days. Whenever I need to buy something from them, I know there is a discount that will apply. I simply pick the best, most applicable one and save money — on every purchase.
Not only have their incessant discount offers trained me to expect to not pay their standard prices, they have also lost money, as I would have made every purchase anyway.
While I am enjoying the savings, I am left wondering, "What are they thinking?"
In like manner, my Internet hosting company recently embarked on a similar strategy. Their approach was offering discounts. Depending on the offer, it would be 10 to 30% off for a specific product purchase or for a certain level on spending. Each discount offer is time-sensitive, lasting from a few days to a couple of weeks.
They have sent me 10 such offers in the past four weeks; that averages one discount about every three days. Whenever I need to buy something from them, I know there is a discount that will apply. I simply pick the best, most applicable one and save money — on every purchase.
Not only have their incessant discount offers trained me to expect to not pay their standard prices, they have also lost money, as I would have made every purchase anyway.
While I am enjoying the savings, I am left wondering, "What are they thinking?"
Posted by Peter DeHaan at 3/20/2010 7:42 AM 
Categories: Marketing
Tags: office supplies puchase discounts Peter DeHaan blog author Peter DeHaan Peter DeHaan Musings Musings of Peter DeHaan
Categories: Marketing
Tags: office supplies puchase discounts Peter DeHaan blog author Peter DeHaan Peter DeHaan Musings Musings of Peter DeHaan
Comments