Pricing: Theories in Offering Discounts

[mandy]

We have received several inquiries about how to conduct a “sale” or how to discount.  Most people believe that discounting is a pricing concept, but really it is a marketing concept. When thinking about discounting you need to think about how this discount compares to other potential marketing strategies you can implement, such as promoting your items on your blog, offering free gifts or purchasing a showcase spot.  A discount is just one way to entice a customer to buy.

A discount or sales promotion is intended to be all about “action” or an immediate sale.  Many use it to create the sense of a getting a deal or a “one-time-only” sense of urgency.  These types of promotions should be used carefully and evaluated against the other promotion options..

full article: http://www.etsy.com/storque/section/howT...nting/570/