A reader has been teasing me:
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“You say you have to be patient to sustain the prices, and then you offer a promotion with a 50% discount? What happened to patience?”
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I laughed and thanked for the taunt.
Indeed, it may seem incoherent.
But here’s the explanation.
The product (TheSystem) was launched on the market in autumn 2015. The bulk of the sales took place during the launch, at a discounted price, and in a subsequent “Black Friday” promotion. When we brought the price back to list value, weekly sales volumes decreased.
From the end of 2015 to July 2016 I therefore practiced the noble art of patience, sustaining the price of the product.
And I would have continued to do so, until in recent weeks, hearing about a company that has products in stock for a value greater than turnover, I said to myself:
– What if instead of being know-how, or immaterial products, my products were materials? What should I do? Shouldn’t I care about the rotation, at the risk of keeping some unsold products on the shelves… or emptying the warehouses and generating cash?
So, I decided to run a test, and called for a promotion last week.
I was really curious to see if the price would significantly move sales. I didn’t even know what to expect: whether a flop that would satisfy the ego of the marketer, or a sales boom that would make the wallet happy.
Okay, do you want to know the result?
Wait for it…
…the promotion went so well, that the BOOM scenario of sales has won out great!
Ergo:
The value of a product must be charged. Always.
But remember that we are in Italy, not in the USA.
And we have to deal with this market.
So, if you set a price that the market, AFTER having made all possible marketing efforts, is struggling to pay:
– you change the price
– or either you keep the product on the shelves
You have products that are worth 100, but you sell a few with that level?
Do you prefer to keep them still or make cash?
Meditate on it.
P.S.:
If the results are just as positive, there will be a lot of news on the marketing policies of all our products. So, go for it and buy TheSystem
