I think there are four options to offering discounts:
- Never offer a discount. There are luxury stores who offer this.
- Offer a discount only when there is a good reason for it (when Apple launches the new iPad, the older version gets cheaper. When new fashion clothing appears, the old one gets cheaper).
- Offer discounts to some products – eMAG does this. So do most online stores in Romania.
- Everything is a discount – Amazon does this. All of their products have something like this:
What’s my recommendation?
- If you’re luxury, go for the first option.
- If you’re not luxury, go for the second or the last option. I tend to buy nothing from eMAG, if they don’t have a discount.
- If you do practice eMAG’s policy, offer good products with big discounts, and offer no discounts for products which, if someone is interested in them, gets them from you since that person has no alternative. eMAG does this (sort of) – for the top selling products, they generally have discounts. Not so popular? OK, then pay a premium and have no discounts.
Note: Also see the Yahoo! Group on which I present similar issues:IMRo. To join, email email@example.com and reply to the confirmation email.