3570 Q&A

Q&A: “Can I offer a permanent price discount?”

A listener wants to know whether running a permanent sale in his online store is a smart tactic or a trust problem waiting to happen.

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You've probably noticed the furniture store that never seems to stop having a sale — so often that the discount becomes the price. It works, and today's caller wants to know if he can run his own online store the same way.

I've noticed that whenever I put my products on sale, I sell more. Not surprising, right? But a recent holiday sale got me thinking. Is there anything wrong with having my whole online store on sale all the time? I realize that recurring customers might catch on quickly, but I have a lot of new visitors coming every day. If it just so happened that what they wanted was on sale when they visited, I bet conversion rates would be higher. So that's my question: is there any ethical or practical concern with having a semi-permanent or permanent sale?

No ethical concern at all. E-commerce runs on sales, discounts, and promotions, and there's nothing wrong with charging different prices for the same product at different times — airlines do this constantly, with every passenger on a flight potentially paying a different fare for the same seat. It comes down to supply and demand, and a new visitor has no idea, and no reason to care, that the sale was running yesterday too.

The real risk is with repeat customers, who can grow numb to a discount that's always there. The answer isn't to drop it — it's to keep the sale itself fun and a little playful, the way furniture stores and car dealerships manage to do. Most shoppers already know the sale never ends, and they shop anyway.

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