Black Friday and CyberMonday are gone, the next big sales will start on Boxing day. It might work for businesses like Amazon but is this a good business model?
It’s great if you are after a big boost of money in a short period but as a long-term strategy, it’s flawed.
Sales devalue your work
When you reduce the price of your service or product you are not only telling your customers is that you can do the job cheaper, you are also offering a less good product to assume the cost of the offer. Both cases will devalue your work as well as devaluing the industry that you are in.
Sales don’t help loyalty, only brings parasites
Sales will bring people that don’t want to pay full price for your product or service. What will happen over of time is that your customer database will full of people that don’t care about your products, they only care when you are going to give them at a sales price. “Why should I pay full price when I can get it cheaper?”
Sales create pressure to your business model
The demand of sales will increase over and over. You will need to create more and more offers in order to sell products or services, and for a business, this pressure could damage their self-esteem as well as your cash flow. It’s a spiral difficult easy to get in but nearly impossible to get out.
A small business will never be able to compete with a price strategy because the promiscuous behaviour of the client that will attract will just make your business unsustainable. You can excel in delivery a great experience because that is what small business can do better than the big guys.