The Art of Timing: Why Duration Matters in Discounts and Promotions

The Art of Timing: Why Duration Matters in Discounts and Promotions

Discounts and promotions play a crucial role in business. In addition to classifying discounts by type, dividing them by duration is equally important.

Discounts and promotions by duration are marketing tools offered by sellers or companies to stimulate demand for goods and services, limited to a specific period of time. Depending on their duration, they can be classified into short-term, long-term, periodic, and permanently ongoing promotions and discounts.

Short-term Discounts and Promotions

Long-term Discounts and Promotions

Periodic Discounts and Promotions

Permanently Ongoing Time-Limited Promotions and Discounts

Let us take a closer look at the most common and large-scale discounts and promotions, their pros and cons, nuances of implementation, and recommendations.

Seasonal discounts and promotions

Seasonal discounts and promotions are discounts conducted during specific times of the year, often tied to season changes or holidays (for example, winter sales, summer discounts, New Year campaigns). Like any marketing tool, they have their advantages and disadvantages. Seasonal discounts and promotions create a sense of a good deal, attracting more customers. They allow engagement with those who usually do not make purchases during this time.

Such discounts and promotions help sell products that may lose relevance in the next season, reducing costs associated with storing goods. During periods of seasonal discounts, demand for products often increases, positively impacting the company’s overall turnover.

Customers appreciate the opportunity to save money, and participating in discounts can strengthen their trust in the brand. It is also an opportunity to bring back customers who have not made purchases for a long time. Time-limited discounts encourage customers to spend more than they initially planned. Along with discounts on older products, new products can be offered, stimulating their sales.

It is very important to consider the downsides of seasonal discounts and promotions, as discounts reduce profits from sold products. If discounts are excessive, this can negatively affect the financial condition of the business. Customers may begin to expect seasonal sales and delay purchases until they start, reducing sales during regular periods.

It is also important to consider product demand. If demand exceeds expectations, there may be inventory shortages. Conversely, if demand is lower than expected, products may remain in stock even after discounts. During seasonal sales, almost all companies offer discounts, which reduces the uniqueness of the offering. Customers may choose competitors with larger discounts, and excessive price reductions can devalue the product in the eyes of consumers and lower its perceived value.

Promoting seasonal discounts requires additional expenses for advertising, store decorations, and other marketing activities.

To minimize the disadvantages of such discounts for businesses, Beautier recommends offering discounts on a limited range of products while keeping more profitable items at full price, using seasonal promotions to push new or additional products, creating a sense of uniqueness by adding gifts or bonuses instead of simply lowering prices, and planning inventory in advance based on past sales analysis.

Seasonal discounts, when approached correctly, can become an effective tool for increasing sales and strengthening the brand’s market position.

Holiday Promotions and Discounts

Holiday promotions and discounts are marketing campaigns tied to specific holidays (Christmas, Easter, New Year, Valentine’s Day, etc.). They are aimed at increasing sales by creating a festive atmosphere and a sense of benefit.

Holidays are always associated with shopping, gifts, and significant expenses, which is why promotions stimulate even greater demand. Customers tend to buy more, even impulsively. Holiday promotions create a sense of care and joy, strengthening customer loyalty. Successful holiday offers can attract new customers who may remain loyal to the brand after the promotion ends.

Such promotions and discounts can be used to promote new products, bundles, or less popular items. Participation in holidays (e.g., through charitable initiatives) enhances the company’s reputation and increases its social significance.

Offers like “buy more — get a discount” or “buy two for the price of one” encourage customers to spend more. Holiday sales promotions also help clear out inventory before a new season. Collaborations with other brands for holiday campaigns can expand the audience and reduce costs.

To properly execute holiday promotions and discounts, it is necessary to consider several downsides of such campaigns.

During holiday periods, most brands launch their own promotions, making it harder to stand out in the market. Customers compare offers, which can reduce the impact of your promotion. Large discounts and special offers can significantly cut into profits.

Holiday promotions often bring a sharp increase in customer flow, which can overwhelm staff and affect service quality. Additionally, customers may postpone purchases on regular days, waiting for significant holiday discounts, which decreases sales stability during other times.

It is crucial to avoid inventory planning errors, as they can lead to surplus or shortage of products, negatively impacting reputation. Adverse events (economic crises, pandemics) can also reduce the effectiveness of holiday promotions.

A successful holiday campaign requires significant investments in advertising, store decorations, and marketing materials. Many customers make one-time purchases for discounts without becoming regular clients.

To minimize the disadvantages of holiday promotions and discounts, it is advisable to evaluate demand in advance, prepare inventory, and plan advertising carefully. Instead of merely lowering prices, offer exclusive bundles, gifts, or themed promotions. Make them attractive but not financially harmful for the business. Highlight value, quality, or exclusivity to retain customers. Expand staff for the holiday period — hire temporary employees. Optimize processes to handle high customer flow effectively.

Holiday promotions and discounts are a powerful tool for boosting sales and strengthening relationships with customers. Beautier reminds you that their success depends on thorough planning, competitive offerings, and effective execution.

Flash Sales

Flash sales are promotions and discounts with significant price reductions, limited to a very short time period (e.g., a few hours or one day). They aim to drive rapid sales growth by creating a sense of urgency.

The time constraint encourages customers to act quickly, stimulating impulsive purchases. A surge in activity during the promotion can significantly increase the company’s revenue. Aggressive price cuts attract those who have not previously purchased the company’s products, giving them an opportunity to become acquainted with the brand.

Flash sales help quickly clear out inventory of unsold items or products nearing the end of their relevance. A promotion can go viral, capturing the attention of a wide audience, especially if accompanied by an active advertising campaign. A positive experience with a flash sale can encourage customers to return for future purchases.

Flash sales also provide a quick influx of funds, which can help businesses address temporary financial gaps or prepare for new investments.

However, there are downsides. Large discounts can significantly reduce profit margins on each unit sold. A significant portion of customers may only be interested in the deal itself and may not become regular clients. High website or store traffic during the sale can lead to technical issues or reduced service quality, which may deter potential repeat customers. A sharp increase in orders can cause delivery delays or errors in order processing, resulting in negative reviews, complaints, and criticism.

Frequent flash sales can condition customers to wait for discounts, thereby reducing full-price sales. Since many companies conduct flash sales, customers often compare deals, choosing the most attractive one, which decreases the uniqueness of your offer.

If a product sells out quickly, issues with payment or delivery may arise, leading to negative customer reactions and harming the brand’s reputation. Additionally, the brief nature of the sale may mean some customers simply miss the opportunity to participate.

To conduct a successful flash sale, offer discounts on select popular or slow-moving items to minimize losses. Ensure your website and logistics are prepared for a sudden surge in orders. Use phrases that boost interest, such as “exclusive for subscribers” or “available to a limited number of customers.” Frequently remind customers about the sale via social media, email campaigns, or push notifications. To retain new customers, provide excellent service and offer additional perks (e.g., coupons for future purchases).

Flash sales can be a powerful tool for quickly attracting customers and increasing sales. However, Beautier reminds you that their effectiveness depends on careful preparation and consideration of potential risks.

Pre-Order

Pre-order is the practice where customers place orders for goods or services well before they are available for purchase or delivery. This can apply to new product lines, updated versions of devices, seasonal goods, events, tours, services, and more. Pre-orders are often accompanied by discounts, bonuses, or availability guarantees.

Pre-ordering allows businesses to estimate the required quantity of goods or services in advance, minimizing overstock and shortages. Businesses receive funds in advance, improving cash flow. For seasonal products (e.g., winter tires or summer tours), pre-orders help alleviate peak periods and distribute the workload evenly. Pre-orders at attractive prices give customers a sense of value and brand loyalty. For businesses, this is an opportunity to optimize supply, production, and storage ahead of time.

Pre-orders help test demand for new products and gather feedback before the main launch. For customers, it ensures that the desired product or service will be delivered on time (especially for limited assortments or high-demand items). Pre-orders are often accompanied by discounts or additional bonuses. Buyers can plan their expenses in advance and receive the needed goods or services conveniently.

Pre-orders can also offer personalization or additional options unavailable in mass sales. Customers avoid standing in queues or competing for products during high-demand periods. For tours or services, it allows them to plan their schedule, vacations, and other arrangements in advance.

However, pre-ordering has its drawbacks for both businesses and customers. Demand may be lower or higher than expected, leading to losses or shortages. If there are delays in delivery or production, it may cause customer dissatisfaction. If the product or service does not meet expectations, an increase in returns can harm the company’s reputation. Discounts and bonuses for pre-orders also reduce profit margins.

Customers may have high expectations due to prior promises, creating additional risks. Funds are locked up for a long period, which may be inconvenient for buyers. Changes in product characteristics or service conditions are also possible. Customers may feel disappointed if the product or service is not provided within the expected time frame. The product or service may not meet the customer’s expectations, and canceling the order can be challenging. If the company fails to meet its obligations (e.g., due to bankruptcy), customers may lose their money.

To successfully conduct pre-orders, businesses need to provide customers with complete information about timelines, product characteristics, and return policies. It is crucial to realistically assess production and logistical capabilities, consider possible changes in orders, and offer compensation for delays. Ensuring that discounts and promotions do not harm profitability is also essential.

For pre-orders, customers tend to work only with reliable suppliers who offer return or compensation options in case of unforeseen circumstances. Pre-ordering is a beneficial strategy when implemented correctly. It helps businesses plan production and sales and allows customers to save money and secure access to desired products or services. Beautier recommends evaluating capabilities, potential profits, and risks in advance.

 

Discounts and promotions by duration create a sense of urgency among buyers, prompting quicker purchasing decisions. These promotions also allow sellers to plan inventory, clear excess stock, and attract new customers while helping buyers save money and organize their time. As we all know, “Time is money!”

Wishing everyone successful promotions, discounts, and outstanding sales!