It’s the holiday season and you know what that means: Sales! Sales! Sales!
Black Friday, Clearance Sales, 20% Off, 70% Off, Limited Supply!
That last 5 weeks or so of the year starting after Thanksgiving are huge with most retailers – both online an off. It’s become almost a requirement to offer some sort of big discount come holiday shopping season.
For the most part, it works! Everybody is out shopping, so what they lose in price they make up for in quantity. You want to get as many customers as you can, especially if you have old inventory that you want to move.
But I recently was learning about a study done on buyer psychology, and the very real possibility that you could be hurting your brand with all these discounts. We feel like we’re just keeping up with everyone else, but are we missing an opportunity to really set ourselves apart?
Discounting Our Brand?
As an affiliate marketer, you’re constantly marketing other people’s products and services. So what really matters is that you create and establish your own BRAND. You’re the go-to guy for health and wellness products and info, or the marketing expert on Forex software and services. The products you promote will cycle in and out, but your customers won’t care because they will be loyal and trusting of YOU, not the individual products.
The same way that people loyally shop at Macy’s, Wal-Mart, Sears, Home Depot, etc. The store has established their brand and therefore earned the loyalty of their customers.
With that said, think of Wal-Mart. They have a great business model and are a huge business success. But what do you think about when you think of them? Most people will associate the store with very low-cost merchandise. The ‘Lowest Prices’ on ‘x’ as some of their commercials advertise. This doesn’t mean that everything in the store is the cheapest, or that they don’t carry any expensive, high quality items. But that is the common opinion and thought process about the store.
Now think about Apple. They are known to sell expensive products and most of their products are more expensive then their competition. But they also have a reputation for quality and innovation, and they have a very loyal customer base. They also have a long standing practice of almost never discounting their merchandise. And the rare times they do, it’s not more then 7-10%. That’s not very much compared to the 50-70% off you hear about around holiday season.
Yet Apple is a powerful, billion dollar company with an amazing reputation. Tourists flock their corporate offices and take pictures. Can you imagine seeing tourists hanging out where you work to take pictures??
Food For Thought
I’m not saying not to offer sales this time of year. Just understand that people can associate low prices with cheap quality if not marketed carefully. If you discount too much, the ‘I’m giving it away’ approach could lead people to associate your brand with low quality and value. It could also lead them to expect cheaper products in the future and even make it harder for you to sell higher priced products.
Studies have shown that people presented with identical products – one with a low price point and one with a high price point – will choose the more expensive one because they believe the higher price means better quality. In one study, the participants were told of this psychological effect beforehand. They were told that people tend to buy the more expensive product even though it’s not any better.
When those people were put through the study, they STILL overwhelmingly chose the more expensive product.
If you’re at the point in your affiliate business where you want to take it to the next level, then seriously consider using this time of year to mold and establish your brand. Instead of being the guy discounting everything and give it away, be the Apple of your niche. Establish yourself as a brand of quality and value. Worth every penny, and more, that people are willing to pay for it.
To Your Success,
P.S. If you want more info on the study, feel free to contact me or visit my blog here for a recording!
Adel (‘Oddle’) is a longtime internet marketer and online marketing coach. Far from perfect, he has spent many years (and many dollars) learning just about every mistake there is to know when it comes to online marketing… all just so you, dear reader, won’t have to suffer through that same agony.
He now works online full time, doing things the right way. You can visit his newest blog – www.RecruitingForMLM.com – for more helpful information, to contact him or to add his Facebook page and follow him there!