At this year's Rottweiler National, I'm going to offer a pre-paid discount for folks on their first 8X10 print which will extend to all their other products when they actually place their order later after they've reviewed their proofs. The objective is, obviously, to generate cashflow and obligate as many people as possible to order by offering a fairly strong financial incentive.
How strong you might ask? Well, that's my question too. I don't believe that there is a huge difference in terms of incentive between a 20% discount and a 25% discount. My standard original 8X10 pricing is $30 so at a 20% discount, that would be $24 and at a 25% discount, $22.50. At the 25% rate, I'd have to generate a 33% increase in sales to break even on pricing. However, the fact that I'd have cash in advance is a primary incentive to offer the pre-paid discount and might very well pay for the trip to and from Greeley, Colorado. So, beyond profit motives, the increased cashflow might be enough to warrant the discount for those who take advantage of it.
My question to the forum is: would you offer a 20% pre-paid discount or a 25% and why.
Thanks in advance for your opinions.
Jim
Last edited by jimgarvie; 03/22/10 07:22 PM.