This week's key takeaway:
The Dangers of Discounting - with Ben Fewtrell and David Carlin
Episode intro:
Don't be swayed by big companies with big suppliers giving discounts. Your own business is likely to have different margins, so you must be mindful of this. Before you discount anything… know your numbers!
Remember that a seemingly small discount will have to deliver a big increase in sales to make it worth it, or worse: it could lead to you making a loss. Ben and David will give you their best tips & tricks for how to avoid getting burnt by discounting.
In this week's episode you will learn:
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The difference between 'discount' and 'value'
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How the theory of 'loss aversion' can help you attract buyers
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The importance of margin analysis
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When to discount
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How discounting correlates with gross margin
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Why it's unlikely you'll lose a customer purely on grounds of price
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What we can learn from petrol stations
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The psychology of buying
Show links:
