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Branding: Just Ask... Brands and Discounts

Discounts In Trials: Good Or Bad?

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Today we take another question from a BSI reader like you…

Jeff, a Marketer in New York City asks:

'What are your thoughts on using discounts in trials?'

Thanks for asking Jeff. If the product cost is relatively low, I recommend distributing free samples. That indicates that you are so confident in the product’s acceptance that you are happy to give it away for free.  Price discounts almost always devalue a brand and may even encourage changes in consumer behavior, training consumers to wait to purchase until there is a sale. A better way to offer a discount is to provide a value added product, service or quantity for the full price, essentially delivering a discount, but in a way that does not devalue the brand. Having said that, it is possible to offer a slight discount on a first purchase after a free product trial, as long as the discounting isn’t continued on a regular basis, reinforcing that the product is not worth its full price.

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Discounts In Trials: Good Or Bad?