RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

Published on: December 25 2022 by The Facebook Disrupter

Running discounts on Facebook has become a popular marketing strategy among businesses. However, before jumping on the bandwagon, it's important to consider whether or not this approach is suitable for your business. In this article, we will discuss the pros and cons of running discounts on Facebook.

Pros:

1. Attract new customers: Running discounts can be an effective way to attract new customers who may not have otherwise considered your business.

2. Increase sales: Offering discounts can lead to an increase in sales, as customers may be more willing to make a purchase if they feel they are getting a good deal.

3. Encourage loyalty: Providing discounts to existing customers can encourage loyalty and repeat business.

Cons:

1. Lower profit margins: Offering discounts means you will be making less profit on each sale.

2. Attract bargain hunters: Discounts can attract customers who are only looking for a bargain and may not become loyal customers.

3. Damage brand image: Offering discounts too frequently can damage your brand image and make your products or services seem cheap or low quality.

Running discounts on Facebook can be an effective marketing strategy, but it's important to consider the potential drawbacks before implementing it. It may be beneficial for businesses looking to attract new customers or encourage loyalty, but it can also lead to lower profit margins and attract bargain hunters. Ultimately, the decision to run a discount should be based on the individual needs and goals of your business.

Table of Contents About RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

Do You Even Need to Run a Sale?

Are sales really necessary for e-commerce stores? Is it worth the effort and potential negative consequences? This article explores the benefits and drawbacks of running sales for online businesses.

The History of Sales:

Discounting during holidays began as a way for traditional retailers to remove inventory from their shelves and increase profit per square foot. However, e-commerce stores do not have the same unit economics and overhead as traditional retailers.

Do You Actually Need It?:

Many businesses get addicted to the cash flow of big sales, but the problem is that there is often a giant deficit in daily revenue immediately after the sale. Therefore, running sales may not always be worth it. In fact, not running a sale can often be more profitable in the long run.

Margin Per Customer Journey:

What is most important for e-commerce stores is margin per customer journey, not cash flow on a specific day. Running a sale may bring in more customers, but it also trains them to wait for sales and devalue the brand.

Poisoning the Well:

Not discounting and maintaining a consistent cash flow can actually poison the well for competitors, while reducing the cost of operation for the business.

Spending Bad Money:

Spending money on acquiring customers at a lower margin during sales periods may hurt the bottom line more than not running paid acquisition media at all. Direct consumer advertising has the advantage of lower operational costs and higher markup margins.

Pr and Understanding:

Instead of running sales, businesses can use the time for PR and understanding. Losing some volume of sales during a period of time may be worth it if the sale is not an anchor point to the business.

Exceptions:

There are exceptions to this, such as businesses with seasonal products that rely on more typical sales flows. However, for most e-commerce stores, the question remains: do you even need to run a sale?

RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

RUNNING DISCOUNTS ON FACEBOOK: Do You Really Need to Run a Discount?

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