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Sveta Bay

Discounts: yes or nah?

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Recently I've noticed that almost every product has a discount offer. I stopped buying for the full price at all 🤯 Example from yesterday: I had a free version of the product and after a week they offered me a 50% discount for the premium plan. I even wanted to buy it for full price, but then I accidentally checked my e-mail 😅 I'm curious now whether all these discounts spoil customers. Probably users even don't buy if there's no discount. Do you make discounts for your product? What are the results?
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Gleb Slonimskiy
We`ve made discount 50% and it works! We have one third of purchases that are made with discount. We think because this is additional trigger.
Sveta Bay
@gleb_slonimskiy wow, that's a lot! Do you send it via e-mail after some time?
Adam K Dean
I do find myself trying to look for deals. I suppose the mental process is how can I get more value for less. The really interesting part is when there is upselling with discounts, that often works. Get what you want for X but for an extra 50%, get twice as much. Then you think, well that averages down the cost per value.
Sveta Bay
@imdsm same for me, I think it's one of cognitive biases. And it works...
Jernej Samide
Hi Sveta, we try to avoid giving out discounts publicly. Nevertheless, in negotiations we, of course, would consider giving discounts and like to work with free months in the beginning for a longer contract period. But this is specific to B2B and our specific niche. I think it very much depends on what kind of customer base you have.
Sveta Bay
@nuvo agree! I think that B2C customers want for an instant discounts, while B2B is more about partnership and mutually beneficial conditions
Rajan Verma (Aarvy)
Discount is an illusion for me. Product maker's got a price in mind and decided to put a double price tag. A product worth 40$ got a price tag of 70$ and over that, you get 50% off. So eventually you pay 35$.. which was the exact price in the maker's mind. Win win for both
Sveta Bay
@rajanverma agree, that's a common sense. But I think even if a customer understands it, it still gives positive emotions!
Edun Kerry
The customer acquisition process starts with building awareness and interest, and discounts are a proven way to do just that. Consumers are attracted by discounts and tend to share them via word-of-mouth—an efficient way to reach new customers while keeping customer acquisition costs in check.
Sveta Bay
@edun_kerry absolutely agree with you! Did you try it on your products?
Edun Kerry
@basv yeah I made a free version and then another version with more features so my customers get to choose the free and if they like my product enough they can go for the paid version with a discount and I made lil money on that
Stefan Wirth
I can't afford discounts ;) I think it's good if you need another reason to get people to act immediately, otherwise I'd like to avoid competing on price tbh.
Sveta Bay
@nafetswirth You're an honest man, Stefan! There was a good response, so I just quote it for reflection "A product worth 40$ got a price tag of 70$ and over that, you get 50% off. So eventually you pay 35$.. which was the exact price in the maker's mind."
Gabriel shin
Do you think discounts are good for b2c or b2b?
Sveta Bay
@gabriel_shin I think it's more about B2C B2C customers want for an instant discounts, while B2B is more about partnership and mutually beneficial conditions
Rich Watson
I always look up for a promo code. I'd imagine some services set their prices a little higher than they want, then offset it with promo codes and holding promotions or having a promo/discount code out at any given time
Sveta Bay
@richw you feel me!
MS Conair
well read these stories where some genuine CEOs guy fired over removing these inflated prices and keeping real one for the sake of truth and what they got is kick in butt from job. https://www.cnn.com/2022/03/05/b...
Sveta Bay
@aurum_ms wow, what a story!
GamerSeo
Everyone likes to feel like they've made a good deal. That is why so many people use this tenihka. But in my opinion, this is not a good path, because the best group of customers is not primarily driven by the price.
Sveta Bay
@gamerseo absolutely agree! But this best group is much smaller than the group, that hunts for promo 🤔
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