A lot of times we give consumer price off discount based on the margin that we can afford to give away. However, what happens if you only have one chance to run this price off and you would like to run this effectively? How can you conduct a price off promotion effectively? Here are some pointers and guidelines to conduct an effective price off promotion
Ensure that the margin to retailer is reasonable when considering the price to retailer and price to consumer
This is to ensure you lessen the risk of the retailer not following your recommended consumer price.
Monitor competitor pricing activities
You may have a lot of room to invest in a price off promotion but really is it necessary to give it your all? Always look at your competitors and how much discount they are offering and what is the price level that they are giving away? You can then decided if you want to match your competitor’s price discount level or their price as there is always a reason why they would be offering at that price especially if it works for them.
Have other supporting materials
The price off promotion would not be workable if no one knows about it. You need to also ensure sufficient visibility, Point Of Sales Materials (POSM) to highlight the discount or enough advertising to create awareness of your price off promotion
These are just some of the factors on how to conduct a price off promotion. If you have any other factors, do share with me!
