Black Friday is a shopper’s dream and worst nightmare. The mass of post-Thanksgiving ads has already begun, with retailers large and small offering deals on just about everything.
Aside from the fact that it’s now common thing to offer a discount, there are strategic reasons (or companies think they’re strategic) why companies choose to cut their prices. Business should understand what this strategy sometimes works as ‘destroyer of your sales’.
The main thing is that discounting doesn’t just affect the B2C industry. B2B companies offer discounts on their products or services as well. But should they? WalletHub surveyed 8,000 deals from 30 of the biggest U.S. retailers’ 2015 Black Friday ad scans and identified the retailers offering the largest advertised discounts for each product category such as “Jewelry” and “Appliances.” Maybe this is the answer for B2B companies.
Instead of focusing on great aspects of the product or service, they immediately move to the price. Companies offer a 20% off discount for all new customers. And what they get? An imitation of sales. Where the real problem lies isn’t with generating the new customers and sales, it’s what that discount in price represents and attract unqualified leads.
Products or services from B2B industry (especially SaaS) usually needs more attention, more involvement and engagement. This is not about ‘instant purchasing’ which is all about Black Friday. Other reason for not giving discounts is that as soon as you lower your price, your customer will expect to see the same thing next time. The last thing you should want in your sales conversation is to have the conversation focused only on price.
While talking about Teamgate, we believe that great products do not need discounts. Great products need to be tested. When you’re offering a discount on your service or product, what is that saying to your potencial client? It’s saying that you don’t believe enough in what you’re selling. You are trying to attract customers because of the price and discounts, not because of the product or service quality.
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From the client perspective, the main question is if all the deals are great and effective? Personal finance website NerdWallet analyzed 21 Black Friday advertisements and found that 20 retailers listed at least one product for the exact same price in 2015 as in their 2014 ad. That translates to an overwhelming 95% of retailers repeating Black Friday deals this year. So do not take it straightforward even if its B2B product or service advertisement for Black Friday.
Have a fresh Black Friday and Choose Value Over Discounts.