In this video, let's talk about how to use discounts and promotions for your products to boost sales
and to use them to set the price for your product or service.
So just about every business has them.
Apple is very famous for almost never having them, having very few of them, but most businesses use
them very liberally and they make it look like they don't.
And first of all, it's important for them for the businesses to create a perception of value.
So, for example, you know, a lot of products they take literally pennies to make.
But it doesn't matter, because the more you can get for the product, the more profit the company makes.
So the company has to make their products or services appear as though they are more valuable than they
are, and often pricing things high is a part of making products appear more valuable.
And as long as the market holds up that price, in other words, as long as there is no competitor of
yours, that's under bidding you in price and the price, the market price for a certain service or
product is stable, then that's the perceived value for the product.
Even though the value might be 10 times less and the higher you create the value of perception, the
more you can run.
Discounts and discounts are really closer to the real price as low as you can go.
But because the perceived the price is, for example, $10 maybe like 999, the discounted price may
be 699 or 499.
And to the buyer, that seems like an amazing opportunity to buy it.
But the seller knows I'm still making a profit.
I just ballooned and inflated the original price, so I'm able to give you a big discount on the price
you're paying the $699 499, whereas the 499 is probably close.
You know, if there was price competition, that business would still probably come down to 499.
In our example, at least and the businesses, they get a huge boost from discounts when they run discounts
because they're able to promote discounts in many places on their site.
People jump on their, you know, on their site or in the store.
People really jump on the discounts because they see, Oh my God, they used to be 999.
Now it's 499 like 50 percent discount.
They got to get it now because all the other times they'll have to pay the full price.
So people jump on it, first of all, and not only that, but it gives the business and the opportunity
to sell it promoted externally, like on discount websites on the newspapers and different ads.
Ideal.
Everybody wants a deal and pricing higher than you would allows you to create deals.
And because you can create deals, you have more channels to promote your product, specifically promoting
deals and people love deals.
They jump on deals.
This is the whole point of this discount.
Now how do you make people jump on deals way more readily?
There is a concept of scarcity.
Now, if you have a deal every day of the year, there is no deal.
So you have to limit the deal artificially.
Sometimes the deal is limited naturally, but most of the time the discount or the deal is limited artificially.
So you can say oh, until supplies run out, but you know your supply will never run out.
You can always order more or people say this month only or this weekend only or this summer only whatever
people give a deadline for the end of the promotion so that customers know, Oh my god, I got to jump
on this offer.
I got to get it before the time runs out.
But very often, even if the time runs out.
Not always, but often you can still get that same deal if you ask for it, even if the time ran out.
And you can create scarcity by saying only 100 people like only the first 100 people get this deal or
any way you can limit the availability makes people kind of nervous because, oh my god, I'm not going
to get the deal.
And so they act on it more quickly if they feel like this deal is going to be around for a while.
They get complacent and they don't act on it, and the deal loses effectiveness.
So just to recap, you want to price a little bit higher than typical so you can run promotions and
deals.
And when you run the promotions in deals, you want to create scarcity so that people jump on it.
So you'll be making a lot more sales if you price a little higher and sell it at the deal and run really
strong promotions during the deals periods.