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Should You Offer Black Friday Discounts?

Nov 19, 2021

Should you get involved in Black Friday? What are the pro's and con's of discounting your products and services for Black Friday?

 

Transcript

 

Debbie: Hello? How are you doing birthday? Yeah, probably. Well,

Bertie: you're going to have, so can I kind to sort the Facebook thing out? You keep talking, say sex and words. Debbie, say some words

Debbie: I can say words. I think, I think that I have my, uh, branded piece of paper. So Betty will be very happy with me about that. So today we are going to be talking about the wonderful world of black Friday.

And cyber Monday. I think we can fray that existence cyber Monday, like the following Monday, I think that's

Bertie: like,

Debbie: you know, towards the end of November. And so. Obviously, this is an opportunity for businesses to offer discounts, but really should we, should we be offering discounts? Should we be doing the black Friday thing?

Should we be doing the cyber Monday thing? I have I'm in two minds, you know, I've got two sides of, I can see the benefits and the negatives of it. And I think it's really interesting, isn't it? This idea of whether we should discount our, our products and services in the first place. Yeah, cause I taught so much about me.

You know, you sell your products based on the value, like, think about the experience that you give customers, you know, up your prices, charge what you're worth, all of that stuff. And then we come along here and it's like, oh, for discounts, take money away. And that kind of thing. So that. That they were kind of in a fight with each other in my head really?

Around this idea. Yeah. Yeah.

Bertie: They are. I don't think what the, I think that there is one of the reasons I want to talk about that. I think, you know, discounting, like, you know, when you see black Friday and, you know, discounted like, you know, retail and all that sort of stuff, it's part of a much bigger strategy.

So I think discounts can be used really, really effectively. So you can use them to love your products. You can use them to get a lower level and then sell. Um, you know, types of services, but I think just discounting Willy nilly, it can be quite damaging to your business and quite dangerous because you get, where do you value something?

And also we'll discount far too much. And then, uh, they're selling a product. They could have probably sold it anyway. So let's just take you, we discount you and sell you really cheap next week. You're really busy anyway. Like, is that going to be the gap for your. I

Debbie: don't, I don't need the discount, but thinking about products.

So Amy and I were running a, um, a workshop in the new year about smashing your goals. And so we have decided to do a black Friday discounts for that, because essentially we can have as many people as we can fit into that. Because it says workshop and we were like, let's just do it and see if that gives us an upturn in sales.

And you add in that scarcity element, which is a good way to get people. And perhaps there's people looking at it and sitting on the fence and that might kind of knock them over. Um, so I think it depends what you're selling as well. Like if you're, if you're selling something and it's kind of a group thing, and actually, if you can get few more people.

Then that's a bonus. If it's you delivering something one-to-one you probably don't want to discount that because you are, that's your kind of highest price thing, isn't it? Your time is the most valuable thing that you've got. So I think it also depends what you could discount and whether you want to, but I wouldn't ever.

Kind of undervalue your one-to-one time, but that's, that's a premium, isn't it?

Bertie: Yeah. Yeah. If anyone that's just yeah. Selling their own time. I mean, it doesn't, it doesn't mean that you can't do that. It just, you thought you've just got to think about this. I think sometimes people will just discount because it's back Friday.

Like, oh, I must do it. Or I'm going to lose this weight. Like you don't have to like, have never discounted for a long time, but like you, I'm going to experiment with something very similar where I'm selling something. There's not necessarily my one-to-one time, but I'm using it as part of a much bigger strategy.

So, you know, I think those things are completely accessible, but also, you know, like figure out what you discounted. Like if you've got some old stock, for example, that's a great. You know, thing to do, discount it, get rid of it, sell it cheap. You know, when I talk about like department stores using, um, is why wider structure, that's literally what they do.

So come Christmas, they will, we allow all of the good stuff and I don't know where they keep this other stuff, but they wheel it in and from somewhere with like 5% discount boxing day sales, you've never even seen it for the entire year. Like that's so you've got stuff like that, that you can sell, sell cheat, you know, and use that.

In a way to attract customers to your business. Fantastic.

Debbie: Yeah, exactly. And I think in the example of Emmy and I kind of discounting that, um, workshop, hopefully people will come on the workshop that haven't worked with before. And then that's a first step on that ladder of products. Isn't it. To experience what we've asked them, maybe they'll end up working with IRA buses or one-to-one coach.

That's kind of a way to get people in the door. It was interesting because one of my clients runs. You know, has re has a retail shop. She owns a shop, you know, on the high street. And we were talking about black Friday and she's not going to do black Friday discounts because for very small retail businesses, that can be totally damaging.

You know, big department stores can swallow those. But what they're doing is they're going to gift things, which I thought was really nice. So instead of discounting the things they've got, they're going to say, if you spend over a certain threshold, we're going to throw in a few goodies to every order that we get over the weekend.

So. I kind of doing it in a different way. And she was talking to me and saying, well, I'm going to send this email. I'm going to talk about the negative effects of black Friday and dah, dah, dah, dah, dah. And I was like, no, stop. Just talk about the positive effects of what you're doing by gifting. Don't, don't even talk about the negative bits of it.

Just say how happy you are. To be able to give people these three, this, this, these free gifts, you know, I think they're going to give them like a, some crystals, teenagers love crystals at the moment. Oh my God. My daughter's bedroom is full of crystals. So I think they're going to give something away that they have lots of that would, that would have an high-impact value on their customers and turn that kind of story of black Friday can hurt small businesses into a positive, but actually we're going to get you something.

You know, and improve that shopping experience. So I think that there's, there's different ways that you can do it, you know, you can, you can make it work for you, I

Bertie: think. Yeah. And I think that's the right message. Reporting out. Anything can hurt small businesses, right? Anything.

Debbie: Well, I guess on that high street at the moment, isn't it?

Um,

Bertie: yeah, and I think, you know, everybody loves to discount because like I live at this cabinet. I was having this conversation yesterday in that, you know, if I, if I get to the checkout, this is about a watch or carry is what I'm buying. I get to the checkout and see coupon code. That's it. I'm going through the internet to try and find a coupon code.

Right. I'm not leaving. You. So in that instance, you know, that can be, that's just me, but I think a lot of other people are like that as well. I don't know, but

Debbie: yeah,

Bertie: like I have to find that, like, I have to find the code, even if it's just 5%, right? Oh,

Debbie: five. Oh, that tiny waist. Like

Bertie: I'm going to find it somewhere. Yeah, but yeah, everybody loves a discount. Maybe not everyone, you know, waste as much time. And so those sorts of lenses, uh, as either people love discounts. And I think making people feel bad for like, the discounts is the wrong thing to do. Like they were everywhere. Right.

And, you know, I bought a cheaper toothpaste yesterday for 10 quid's. Their only reason I bought it is because it was reduced from 20 and it was like, oh, this is going to make my teeth nice and shiny white as well.

Debbie: Okay, how long does it take till we see the results? Because we can all be the judge of how great this toothpaste is.

And we'll be looking

Bertie: at those then might as the dentist having my teeth sorted anyway, stay. So I don't know whether it will be the toothpaste. It's not a, it's not a fair, fair. I'm not having all caps or anything. I'm just thinking,

Debbie: having that, where you have a little at the front.

Bertie: Yeah, hopefully that should be talked about.

Yeah, I've got to have my tooth changed.

It's about ready to fall out. So I'm just going to have a gap where a tooth should be.

Debbie: Oh, I hate you when that happens. But 10 pounds on toothpaste. I mean, they've had to make that 50% for you to not feel like you're crying 20 pounds to pay.

Bertie: Yeah. So I think it's got, so yeah, I'm open. It's just like bleach and it just, it just, it just makes them all nice and shiny again, who knows?

Who knows what will happen anyway, too much about toothpaste and less about, Hey, so I bought, I bought toothpaste for 10 pounds because it was discounted. So the last thing that you bought that was just because it was cheap. Well,

Debbie: I did say this morning when I turned on my emails that ASAP and I like their skincare range is giving 50% off.

So I thought, great. I'm just going to go and buy all of the things that I buy from there. Even if they've not run out in one big boat purchase and get 15% off. So that's definitely pushing me to kind of go to the website, make a bigger purchase than I ordinarily were to make the most of the discount.

And I think. Push people to act. Doesn't it? I think that's the thing it's like back to that idea of like, how do we make it easy for people to say yes, it does make it easy for people to say yes. Cause it's like, well, maybe I was sitting on the fence. Maybe it was thinking about buying it, actually that, that things pushed me into that.

And I, you know, I love a bargain as well. I've got a pair of boots I want and I just keep refreshing. The web browser page thinking at some point they're going to be, they're going to be a discount on their food. It's not going to find straightaway. So I do sit there waiting for things to drop in price sometimes because you're right.

We do love a discount. We do love the sense of a bunk and. Probably what the biggest stores are doing actually is they can afford, they can afford that discount because it's a loss leader for them, or they have such great, uh, profit on that individual item that they can afford to cut it. Like, what you don't want to do is get to the point where you're discounting things and then essentially you're not making any.

Yeah. Yeah. That's not a good place to be, but if you can afford to shrink the price a little bit to encourage more sales, to increase more people to come through your door, then that's got to be a good thing. Isn't it?

Bertie: It has. And you know, just your example then of all the big stores, do you know? I just gave one strategy about, you know, winning in all the old stuff or.

When a product goes on the shelves in any, any, any retail place, a bigger place that would have sales, then the sell price is always factored into that. So it's them right from day one, they know exactly what they're going to sell it as the launch price. And then you know that the mid sale or whatever, and then how much leather clearance is going to be.

It's all it it's already planned out. And they knew that almost the exact unit of what things are going to sell because they've got the data on it. So when you're buying it, the full price you're buying. Uh, the price because it's already taken into account and it's going to be discounted later. So this is mapped out right from day one.

So that's what I mean when you're, if you're thinking about this for your products, like when you're launching your product factor in actually I've got these products I'm going to launch now, do I want to discount that in boxing day? And you can mock up a little bit too to factor all those things in. So it's a much bigger strategy.

So if you don't want to do discounts, don't do it. If you've got something you can sell cheaper. Then go and do it. Fantastic. But don't feel the pressure point and wants to make today. Or we've got comments

Debbie: as Steve whittles asking, have I asked for discount on my boots now? Cause it's a massive, it's a massive business.

I mean like, hello, I like your boots. Could you just give me a discount? Uh, and if it was a small, independent business, I would never ask for a discount because I know that their margins are super, super kind of. Fine. Aren't they there on a, on a hair's breath. I think also the last thing say about discounts is you don't just have to discount for black Friday.

Like oftentimes I'll see people launch a new product and there'll be some kind of, you know, offer for founding members and that type of thing. So. Thinking of creating a new product or launching something you might have, like the big stores do a number of different price points mapped out from the very beginning.

This is my full price offer. This is my founding members offer. This is the discount you get. If you bulk buy and pay in one installment, you know, we're always playing around the pricing and just thinking about how you can get somebody who's maybe sitting on the fence to give you a yes and just. Pop them over, put them over the ledge, but we've probably run out of time now.

Haven't we? So we're both going to experiment black Friday discounts. So aren't we that's that's mm we're happy to share, uh, successes about that. Let's see what our experience

Bertie: was. Success learnings. You will get all that in a future at 10, at 10, but not next week, because next week we're going to carry on this conversation because we're going to talk about upselling.

So how can you use these? How can you use these discounts to them, upsells or something else? Upselling. Now next week's business. One size life.

Debbie: Fabulous see you next week. Well, we got a quick one from Steve always and more often than not. I'll get one. Do you know what? I had a boss and she used to get discounts on white goods, fridges, washing machines, cars, everything she bought.

She asked for a discount. I was just in order of her because I just pay the ticket price. I just think that's the price it is. And I pay it. I never enter into that conversation. I find it. Ooh. So maybe Steve you'd have to give me some tips on them on how to be a discount hunter. I'm with

Bertie: Steve on this. I for discounts on everything.

Debbie: Right? Right. I'm going to go into town later on and see if I can get things discounted and get on. I can

Bertie: get you your shopping at the checkouts. You can give you a discount on that slip. See what else? Let us

Debbie: see you next week. Bye bye.

 

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