Reward loyalty, not Johnny-Come-Latelys.
I know it’s tempting when something isn’t selling to go low and try to tempt them in.
But it can really annoy your biggest fans, who bought at full price when things first went on sale.
I got an email a couple of months ago from a golf club offering corporate sponsorship. The package cost something like £1500 and the email enthused at length about what a great offer this was and how they were anticipating huge demand.
48 hours later, another email came in saying ‘only a few spots were left’ and that the price was now slashed significantly – and the saving amounted to about £400 or £500.
I’d suggest this is NOT the way to discount. It sends out a clear message that the original offer was vastly over priced and the reward you give your biggest fans for coming in straight away, is to give the others, who didn’t, a whopping discount!
It’s poor customer service and can damage your brand. It’s just not a good way to treat people. It also suggests you struggle to sell.
Surely it would be better to offer the discount as an ‘early bird’ incentive? That way, if there is good take up you might need to do less advertising, you don’t take a gamble on venue hire etc and if people come along later they pay your standard rate.
Instead, some business owners get greedy from the outset and jack up the price as high as they can, thinking they’ll slash it later if their product isn’t as popular as they think it is.