Kalpana Heliya
Par 100 posts (V.I.P)
Be mindful of the customer's 'paycheck cycle.' The Wall Street Journal recently reported on how companies are successfully discounting based on how close customers are to payday. All buying power is relative--and it can vary greatly from week to week and even from day to day.
Create a perceived discount by including an extra amount "free." It's an old trick, but still a good one: Giving customers "20% more!" product may cost a lot less than offering them a 20 percent discount while appearing equal in value to the customer.
Discount on a customer-by-customer basis. Haggling is back. And it's everywhere. Customers are now prepared to ask for discounts even in grocery stores. Companies should let their sales people know how much leeway they have to negotiate a deal, and should train them to ensure they consistently realize the best negotiated price.
Offer old-school financing. Remember layaway? These payment-deferral programs are back, enjoying a revival among some retailers like Kmart, for example. And a new firm, eLayaway , has updated the concept, allowing customers to choose products from about 1,000 local retailers online. The site arranges for monthly deductions from customers' bank accounts in return for a 1.9 percent service charge.
source: Voices - HarvardBusiness.org
Create a perceived discount by including an extra amount "free." It's an old trick, but still a good one: Giving customers "20% more!" product may cost a lot less than offering them a 20 percent discount while appearing equal in value to the customer.
Discount on a customer-by-customer basis. Haggling is back. And it's everywhere. Customers are now prepared to ask for discounts even in grocery stores. Companies should let their sales people know how much leeway they have to negotiate a deal, and should train them to ensure they consistently realize the best negotiated price.
Offer old-school financing. Remember layaway? These payment-deferral programs are back, enjoying a revival among some retailers like Kmart, for example. And a new firm, eLayaway , has updated the concept, allowing customers to choose products from about 1,000 local retailers online. The site arranges for monthly deductions from customers' bank accounts in return for a 1.9 percent service charge.
source: Voices - HarvardBusiness.org