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Why Discounts Shouldn’t Be For Everyone

Financian0:45

Transcription

If there was 20% off all BMWs, you wouldn't be that interested. Whereas, if you had a mate who worked for a BMW dealership who could get you 20% off cuz you were a mate, you'd be bashing down a path to their door.

The weirdest thing of all is this business of doing club card prices where you only get a a discount if you use the loyalty program. Our argument, we suggested this to to Sainsburries, a discount that not everybody else can have has a higher perceived value than one that's just effectively open to all.

If you say 50% off to over 30s or something, the over 30s see that as being much more valuable than if you go x% off to everybody.

The worst mistake you can make is assuming that once you're doing a discount, it doesn't need marketing because the discount stands for itself.