What's up brand builders Stephen Houraghan here at BrandMasterAcademy.com and in this
video you're going to learn some of the best promotional pricing examples and types
for discounts and sales so you can leverage this effective strategy to drive
more sales and learn when to use this powerful approach to maximum effect
now if you're new to the channel and you want to build brands that go beyond the visuals using
strategy psychology and creative thinking then you're in the right place hit that subscribe
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i created a video recently on pricing promotions called what is promotional pricing now if you
haven't seen that yet i'll leave a link in the description below if you want to check that out
let me quickly give you a definition of what promotional pricing is before we dive in
promotional pricing is a pricing strategy used by brands that want to drive short-term
sales and they do this by temporarily reducing the price of products or services
to entice customers to buy before the offer expires and this is often communicated through
integrated marketing campaigns so in other words promotional pricing are sales and discounts that
are used to boost sales and bottom line revenue now although sales boosts revenue which kind of
seems like a no-brainer there's more going on in the mind of the customer that we need to consider
when it comes to promotions now for the most part much of this happens on a subconscious level but
it impacts many things including value perception price perception brand perception brand loyalty
the fear of missing out the gratification of purchase success promotion expectation
and promotion addiction now all of these factors are a play during a pricing promotion and brands
operating with this approach as part of an overall strategy need to consider both the long-term and
the short-term effects with all that being said let's take a look at some of the most widely used
promotional pricing examples so you can see if there's a certain type of promotion that will
work well for you but before we do if you do have any questions drop a comment below and of course
if you like this video hit the like and subscribe and the notification bell will let you know when
i have new videos just like this one now the first approach is the simple sale price now this
is probably the most recognized vanilla pricing strategy approach available and it's a simple
sale offering the buyer a sale by dollar value or a sale by percentage of value so for example 25
off or 25 off now the impact of either of these approaches is relative to the original price so
for example 25 off a 900 product is far less appealing than 25 off a product at that price
the next type is two for one now the buy one get one free model can be used in a few different ways
the most obvious gives the buyer a second item for the original price for example two tubes of
toothpaste for the price of one but it can also be used as an incentive for couples or parents to
pay for experiences or entertainment such as two cinema tickets for the price of one or two meals
for the price of one the next example is bulk buy promotion now we see this promotion in the
supermarket all the time and with this approach the incentive is in purchasing higher volumes to
reduce the average cost so for example 50 of a second item or three for the price of four next
up is flash sales and limited numbers now this approach uses the scarcity level to full effect
these promotions typically use a very short window of time such as 48 hours or 24 hours or a very
limited number of units and it allows brands to create a sense of exclusivity around the campaign
and can drive rapid results the next promotional type are loyalty incentives now this strategy
offers existing customers an exclusive offer as a reward for their loyalty which can be seen as a
bit of a win-win for brands it creates a sense of exclusivity for existing customers and ultimately
loyalty while incentivizing non-customers to join the exclusive club next up are seasonal promotions
now black friday without a doubt is the biggest seasonal promotion event on the calendar and it
provides brands with a feeding ground for new customers who are willing to come to the table
with their wallets out looking for bargains but the caveat here is that you'd better be
offering deep discounts to get some of that black friday action now look when it comes
to pricing your products this isn't a game of throw some [ __ ] at the wall and see what sticks
research your market research your competitors and take the time to define your pricing model
for your brand now once you've done that consider both your long and your short term strategy
is there room for price promotion if so where and when for how long for how many units for how
many times per year be loyal to your existing pricing model play the long game and only use
pricing promotions in a way that will keep your brand equity intact and boost your profits while
you do it now your pricing strategy is just one of many factors to consider when defining your
position in the market if you want to learn how to define your position in the market then this
video will help you out until next time brand like a master and i'll see you in the next video