She Who Must Be Obeyed aka The Boss started looking for a Gucci watch for her birthday next February. She has a collection of them. Gucci watches mean "mucho dineros" i.e.: expensive. Last week she got a phone call from one of the most expensive jeweler in town, that they will be having a "sale" on Tuesday. Luxury and Sales. The recession must be on and it must be hurting. She went, saw the watch she wanted, asked for a big further discount, another 20% below the sale price, that the store manager approved. What a deal! I can't afford to save money.
Lets examine the situation:
- Gucci: Luxury watches
- Luxury jewelry store, calling at home to publicize sales
- Easy negotiation to reduce the price
- Sale of the watch at either no profit or loss
- The sale happened not only because of the discount, but because she wanted that Gucci watch before the sale.
No amount of discount, price reduction would make me buy a Gucci for myself. I am not interested. The sale does not create my interest. Now a sale on cameras and lenses? We are talking. But why have a sale in the first place? If there is interest, there is no need for the price reduction. Canon just raised the price of the 5dMkII by $300 because the demand was so strong. In 6 to 9 month the price will start to go down, I hope.
- If you ask someone, "will you buy if I give you a 25% discount?" the answer is almost always no, if the person is not interested. Lowering a price is not enough to change a non-interested into I want it.
- The more discounts you give, the more customers will smell "the fear" and ask for more and deeper discounts.
- The more discounts you give, the more you devalue your photos.
- The more discounts you give, the more you devalue yourself.
Instead of a sale, what about extras?
- Buy this camera and this lens, we will give you a flash.
- Buy that camera and that lens, we will give you a tripod or a photo-vest or...
- Even better give the photographer a choice between the flash, the tripod or the photo-vest.
- Selling wedding photo coverage? What about a free 10" photo display with 75 low res jpeg.
- Portrait studio? What about an 11 by 14 free canvas print for the photo portrait session?