It’s almost Black Friday again, one of the largest marketing and sales events of the global retail calendar. Quick! Grab those scissors and start chopping your product price tags in half pronto!
Or maybe don’t… What do you risk by standing firm on your prices this Black Friday and can you even participate in a sales event without having a sale?
In this blog, we’re exploring ways to immerse your brand and customers in the beauty of Black Friday without ripping apart your bottom line. Read on and you’ll see why there’s no need for price-cut FOMO this Black Friday!
Black Friday/Cyber Monday Means Price Cuts. Doesn’t It?
As the Black Friday Cyber Monday (BFCM) season approaches, there’s a common misconception that you need to slash prices drastically to make an impact.
But here’s the truth: Extreme discounts aren’t always the answer.
Sure, discounts grab attention, but offering massive price cuts can sometimes be the worst move you can make for your brand. Like, EVER.
Here’s what lowering your prices can do.
Squeezes your margins to nothingness:
An obvious one, but so many brands are guilty of it! In the rush to make a sale or five, you focus on lowering the final price your customer sees on the tag to make it seem super attractive, rather than on the profit you’re making. Or losing!
Attracts fly-in-fly-out customers:
You know the type, those who LOVE a bargain, come in and shop themselves silly then you never hear from them again post-sale. Yes, they spend but at what cost to your business when it’s only a one-off?
Damages your brand’s value:
Sure, anyone who’s anyone gets involved in Black Friday and rock-bottom prices are the norm. This doesn’t necessarily lead to brand loyalty; worse, it can make you look less about ‘value’ moving forwards.
But wait up. Before you go hanging a ‘Closed until December’ sign on the door, how about you stop a second and consider a more strategic approach to BFCM.
Instead of slashing prices, here are some things you can do to involve your brand in the fun and make money without spending the next twelve months in recovery mode.
– Bundling offers:
Encourage customers to buy more by offering product bundles at a slight discount. This boosts your average order value (so you make more money) and gives more perceived value to the customer (so they feel more positive).
– Exclusive promotions:
Who doesn’t love a bit of VIP treatment? Create promotions for your loyal customers by allowing them a free VIP membership. This nurtures long-term relationships without deep discounting across your products.
– Tiered discounts:
Offer higher discounts based on how much the customer spends. This motivates customers to add more to their cart to unlock better deals, and you can choose which products to include in the offer too, rather than going storewide.
– Free gift with a purchase:
Add extra value without cutting into your margins by offering a free product with purchases over a certain amount. It’s a great way to clear excess inventory as well as building the relationship with your customers.
Plan Your Black Friday Event – So That YOU Enjoy Some Deals Too!
BFCM isn’t just about a race to the bottom with prices, it’s about crafting an experience that encourages customers to engage with your brand beyond just one sale.
Implement one or more of these strategies, and you’ll ensure you do more than survive the event but thrive long-term with the types of customers you want. That’s those who value your products and brand.
Remember, strategy beats steep discounts every time.
Need help with your Black Friday strategy?