Cyber Monday is the biggest online shopping day of the year. For any online business, this is a huge opportunity to boost your sales before the end of the year and clear out that old stock. However, it’s also important for marketers and business owners to remember that a sale for its own sake isn’t much good.
Make Sure Your Price Reductions are Strategic!
Sales are great, and they’re a great tool to provide incentive and a sense of urgency to your customers. It’s important to remember, though, that this only works if you don’t undersell your products. Slashing prices by 70% could be a great idea for some products, especially if they’re outdated and just taking up space in your inventory, but in other cases it can be extremely unprofitable if you’re not careful.
For example: If you’re selling some high quality lamps at 50% off, your customers will be grateful, but won’t be likely to remember your business 5 or 10 years down the line when they go lamp-shopping again.
If, on the other hand, you sell coffee, then you could be securing a regularly recurring customer for years to come.
In the first case you have to make sure that you’re still making a profit on the initial purchase, but in the second case it doesn’t matter much, because you’ll recover the loss through future purchases by that same customer.