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Nov 24, 2008
Blog Post

SherpaBlog: Offer Holiday Discounts without Damaging Your Premium Brand

SUMMARY: No summary available.
By Adam T. Sutton, Reporter

Discounts abound at eretail sites this holiday season. The New York Times dubbed the price slashing “holiday price wars” in an article on November 19. The article’s desperate tone underlines what many of us already know: The holiday shopping season is going to be rough.

Every consumer is looking for a discount, which doesn’t bode well for premium brands. Price drops and coupons can diminish a brand’s boutique image. But some marketers are finding a way around this quandary.

Shoe eretailer Zappos, the NYT’s article mentions, moves shoes that do not sell in six months to, a site they acquired last year. So, Zappos never discounts and always discounts. Two separate brands, one great strategy. We recently published an article on Zappos’ UGC newsletter – see the link below.

For premium brands stuck between staying relevant during the holiday price war and maintaining their image, Zappos’ strategy seems like a great solution. Get an affiliate to sell your products at a discount, or buy a website with a different brand and discount there.

Useful Links Related to This Article:

Follow Zappos' Web 2.0 Steps to Build Email Newsletter Driven by User-Generated Content

Web Sites Wage Holiday Price Wars

See Also:

Comments about this Blog Entry

Nov 24, 2008 - Kordell Norton of Synergy Solutions says:
Although the Black Friday shopping day can indeed impact pricing. . . we miss a big part of the day and the social networking that occurs in the cold and snow between a group of complete strangers at Wal-Mart or Best Buy as they wait for the doors to swing open

Dec 18, 2008 - Bo Janiga of Online marketing says:
Discount without lowering the price: offer a FREE value-add, accessories, your company's promotional merchandise or bonus service from you or your business affiliate. If you sell cameras, offer a free camera bag or free prints, if you sell laptops - add a free USB memory stick, etc. The main point is that the perceived value for money will be competitive, but you will not have the ugly "Discounted" price tag attached to your brand. Besides, you may be able to source some of these value-ads at really attractive prices, so the cost to you can be minimal. Also, we all know the magic of FREE.

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