Let’s face it, discounting sucks. Discounts means lower profit margins or in some cases taking a loss on every sale. Unprofitable sales are often followed by cash flow challenges, meaning difficulty replenishing inventory or paying yourself for all your hard work.
While the big box stores are known for using “loss leaders” to increase traffic and build brand loyalty, they also have financing to endure deep losses for future gains. This is a luxury few small businesses will ever have.
So to launch your new product without offering discounts you’ll have to employ guerilla marketing tactics. These methods typically require a bit of grunt work to get going, but once setup can be highly effective.
These strategies are a great way to start out and get a foothold as a new brand while preserving precious capital. The drawback to these and most guerilla marketing tactics is that they are not scalable. When starting out you often have more time than money, and these strategies work well as an initial launch pad.
But as your brand grows you will notice you begin to have more money and less time. This is when you’ll want to start pursuing more aggressive, scalable launch and growth strategies. Inevitably this will involve at least some form of discounting.
However keep in mind discounts only generate sales velocity when shoppers are aware of the discount offer. If you simply create a discount/ coupon, but your website is generating limited traffic, or your listing is deep in the search results on a marketplace, you’ll see little change in order velocity. Websites like Rebaid.com help generate instant exposure for your promotional offers. With hundreds of thousand of active shoppers, Rebaid can quickly generate large order volumes when pursuing aggressive launch strategies.
Regardless of the launch strategy you use, remember that meeting and exceeding your customer expectations is a necessity. When your product begins generating authentic positive reviews and is shared amongst friends and family it achieves natural sales growth. So closely monitor customer feedback and constantly be seeking to iterate your product to ensure it is the best item amongst your competition!
Brendon Fields started an e-commerce brand selling youth sports equipment in 2013. He has generated over $28 Million in revenue between his independent website and third party marketplace sales since creating his company. In 2019 Brendon started Rebaid.com a promotions platform that helps brands launch and liquidate products. Rebaid is currently the fastest growing platform in the space.
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