Retailers are Offering Discounts for customers purchasing on odd hours.
Examples:
1. OKaidi: Children's apparel and accessories offering 20% discounts on the purchase of its usual T-shirts, Chemises and other items between 10 am and noon- Monday through Thursday. Okaidi registered a 200% Hike in sale.
2. Fashionandyou.com, an e-commerce site selling premium brands, let customers win free luxury gifts every 15 minutes between 5pm and 8pm
3. Cinemax introduced "3 Idiots" with 28 shows daily in some places, the first would start at 6 am. Audience number pushed up by 100%.
4. Candies, a restaurant, offers 25% discount on food between 8pm and closing time. Their unsold inventory has reduced from 15% to 2% at the end of the day.
5. Big Bazaar offers deep discounts every Wednesday, otherwise a lean day.
Benefit to the Comapnies
1. Boosts revenues
2. Eases seasonal and peak-time customer load
3. Improves manpower utilisation
4. Attracts new entry-level customers which otherwise might not have come.
5. Customers for such promotions also tend to buy at full prices.
Dangers
It might wean away customers willing to buy at full price.
The objective is to increase the sale, assuming that the peak hour sale remain the same. However, this assumption may not be valid.
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1 comment:
The main problem with small businesses giving away discounts versus marketing their unique qualities is that many small businesses aren't operating at a profit, or they are operating at a single digit profit. So, when someone gives 20% off, the cash register fills a little, but in the long run, businesses are cutting their own throats with this strategy.
We cover how to make your business a Consumer Destination, with an emphasis on magnifying the differences, not the discounts. You can read more on my blog at the address below.
Jon Schallert
President, The Schallert Group, Inc.
2117 Emerald Drive, Suite 100
Longmont, CO 80504
(303) 774-6522
Read our blog at www.DestinationUBlog.com
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