How to Set Prices in Promotions

Tips to prevent promotions, discounts and special offers from leading to profitability problems.

Thursday, July 7, 2016

By Ariel Banos, President and Founder of Fijaciondeprecios.com

5 Keys to implementing profitable promotions

When sales start to slow, promotions and special offers look like a great lifesaver. However, these measures do not always improve business performance. 

The purpose of promotions and special offers should be to boost sales, but not in any old way. Successful actions are those that appeal to customers who would not normally buy for reasons of price or which generate additional sales from regular customers.

In practice this does not always happen, as the discount ends up generalizing, which means an already punished corporate profitability takes a hit. Therefore in order not to repent the economic performance resulting from a promotion, it is important to consider the following recommendations:

1.  The duration should be limited

"- The result was excellent, lets extend the promo for another month."  This phrase comes right before a serious error.

Read full article (in spanish).



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