Why "Discount-Marketing" doesn't normally work!
It usually starts out with the thinking, “If I could only get people to try us – I know that they’d become repeat customers.” And so you contact Groupon, who makes it all so easy! Why wouldn’t you?
Daily deal websites charge a fee of 15-20% of the sale price with the stipulate that the offer presented be at least 50% off of your original selling price.
It’s easy to think that by offering a discount you’ll attract new customers and they’ll leave happy because they haven’t paid full price, but discounts cost money, and attract customers who are loyal to the discounts, the next Groupon deal, and not to the selling company.
Besides not providing valuable customers, this practice costs a lot more than it looks like on the surface.
And by reducing your selling price by just 10% on a margin of 40%, your sales will need to increase by 33% in order to just make the same profit. That’s tough to do in a competitive market, and these figures are not counting the fees the discounters charge you.
Discounting is also a negative way to market your company. Unless you’re one of the national box stores, you’ll not be able to compete with cost being your driving force to acquire customers. And recent history has shown us that this doesn't always for for them either.
EOA is not a discount service and although we charge fees, the customers we provide you are welling to, and do pay full price. For more than 24-years EOA has grown client’s sales by 10% or more within the first 12 months of becoming a member – with EOA no discounts are required!