We live in a cruel world that appreciates the need to make a profit to help make the world go round, but then what do we all do??? We look for the cheapest we can find.
This weekend I ran an interesting experiment.
First of all I emailed 10,000 of our subscribers for one of my websites www.aquatics-online.co.uk and offered a gift that would expire on the 30th November at midnight.
I sent one half of the list a 10% discount voucher code and the other half 15% discount voucher code.
I also included in the email the website address three times, title, top of email and signature block. Unfortunately I made a mistake in the url in the signature block and I received a number of emails telling me my mistake. So I sent another email apologising, but did not include the voucher code.
The result … astounding.
4 orders used the 10% discount code 51 orders used the 15% discount code!
So what was really different here? I guess on the face of it you could just say that 10% was not as much as 15% … but you would not expect such a high response would you?
I looked back at my email. The email explained about recent changes, it talked of wanting to build loyalty and genuinely appreciated the business that we get. As a gift to you .. the reader.. I was giving you this 15% discount voucher code limited that could be used to purchase anything off the website, but not against carriage.
Why not just discount the price to begin with by 15%? Because as I have always argued I believe that most buyers evaluate the purchase on more than just the price. It is the perceived value, the service, the quality of information and the interaction that takes place with human rather than machine.
So if you are considering just dropping your prices, perhaps consider the less obvious. Create scarcity, in a limited timed window and make the offer a genuine one. Who know you might get more than you bargained for!