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SWOT Team Asks: Can Prices Rebound After Deep Discounts?

by Hank Stroll, Yvonne Bailey  |  
February 24, 2004

Everybody likes to get a deal now and then. In fact, our love affair with free stuff, trial offers and discounts provides fertile ground for companies looking for a way to enter a new market, introduce a new product or rev up lackluster sales.

The question is, Where do we draw the line? We offer discounts and promotions to demonstrate value and entice buyers. But some might say that continuously offering products and services at below market price diminishes the perceived value of those products in the customers' minds. Perception then becomes reality.

What do we do when a promotional offer goes bad—when customers return time and again, expecting to continue receiving discounts or free goods? When our business depends on returning prices to a level of profitability, how do we retain resistant customers? This issue's dilemma asks: How do we align our pricing with the value of our products and still keep our current customers?

Think the price-to-value perception is overrated? Let us know what keeps you up at night. What dilemma do you take with you when you leave the office? Your peers would love to help. Write to us and ask our SWOT Team about your dilemma. Tap into the collective strength, wisdom and experience of this group. It works, and you could win a free copy of our book, A Marketer's Guide to e-Newsletter Publishing.

Revisit our previous dilemma—read below for your peers' best advice on choosing the right distribution channels for a new product launch.

Unite and make a difference!

• Give advice about this issue's dilemma.

• Read your peers' responses to the previous dilemma (below).

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Hank Stroll ( is publisher at InternetVIZ, a custom publisher of 24 B2B e-newsletters reaching 490,000 business executives.

Yvonne is a “customer engagement coach” and President of EVE Consulting, helping companies achieve sustainable market leadership through the power of customer engagement.

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