1 00:00:04,200 --> 00:00:07,080 Speaker 1: Hi, I'm Britney Saunders and welcome to Big Business, the 2 00:00:07,120 --> 00:00:09,640 Speaker 1: place where business is far from boring. And today I'm 3 00:00:09,680 --> 00:00:13,080 Speaker 1: recording on gadigule Land. Now, I somehow managed to build 4 00:00:13,119 --> 00:00:15,960 Speaker 1: an empire from the garage underneath my house and I'm 5 00:00:16,040 --> 00:00:18,200 Speaker 1: here on Big Business to share it all with you, 6 00:00:18,480 --> 00:00:21,760 Speaker 1: from the winds, the huge mistakes, the challenging times and 7 00:00:21,840 --> 00:00:25,320 Speaker 1: funny moments in between. So, whether you're in business already, 8 00:00:25,560 --> 00:00:28,000 Speaker 1: you're wanting to start one, or you're not even in 9 00:00:28,080 --> 00:00:30,200 Speaker 1: business at all and you're just looking for some inspo, 10 00:00:30,480 --> 00:00:32,159 Speaker 1: or you simply just want to hear the tea when 11 00:00:32,159 --> 00:00:34,760 Speaker 1: it comes to running a business, this is the podcast 12 00:00:34,760 --> 00:00:38,000 Speaker 1: for you. Coming up in today's episode, we are talking 13 00:00:38,080 --> 00:00:42,519 Speaker 1: about discount codes. How many times have you yourself shocked 14 00:00:42,520 --> 00:00:45,519 Speaker 1: with a discount code? Have you ever asked a business 15 00:00:45,640 --> 00:00:48,960 Speaker 1: for a discount code? Have you ever scoured the internet 16 00:00:49,000 --> 00:00:51,599 Speaker 1: to find a discount code because you almost feel like 17 00:00:51,680 --> 00:00:55,480 Speaker 1: you can never pay full price? Now? Discount codes can 18 00:00:55,560 --> 00:01:00,440 Speaker 1: be incredibly powerful tools for attracting customers, boosting sales, and 19 00:01:00,480 --> 00:01:04,720 Speaker 1: clearing out inventory, but as with anything in business, they 20 00:01:04,760 --> 00:01:08,160 Speaker 1: come with their own set of challenges and potential pitfalls, 21 00:01:08,520 --> 00:01:11,960 Speaker 1: especially for small businesses. So how do you strike the 22 00:01:12,040 --> 00:01:15,360 Speaker 1: right balance? As I always say, time is money. So 23 00:01:15,440 --> 00:01:21,759 Speaker 1: let's get down to business. So let's kick things off 24 00:01:21,800 --> 00:01:25,160 Speaker 1: by diving into the powerful and positive side of discount codes. 25 00:01:25,880 --> 00:01:28,600 Speaker 1: These little combinations of letters and numbers can have a 26 00:01:28,640 --> 00:01:32,520 Speaker 1: significant impact on your business, and here's how. First up, 27 00:01:32,640 --> 00:01:35,960 Speaker 1: let's talk about attracting new customers. One of the biggest 28 00:01:36,000 --> 00:01:39,720 Speaker 1: hurdles for any business, especially small ones, is getting people 29 00:01:39,760 --> 00:01:43,080 Speaker 1: to take that first step and make a purchase. Discount 30 00:01:43,080 --> 00:01:46,800 Speaker 1: codes can obviously be a fantastic incentive for new customers. 31 00:01:47,080 --> 00:01:49,760 Speaker 1: A special offer like twenty percent off your first order 32 00:01:49,960 --> 00:01:53,000 Speaker 1: can lower the barrier to entry, which makes it easier 33 00:01:53,000 --> 00:01:55,160 Speaker 1: for potential customers to say, why not, I'll give it 34 00:01:55,200 --> 00:01:58,280 Speaker 1: a try. Everyone loves a discount code. I remember when 35 00:01:58,320 --> 00:02:01,280 Speaker 1: I first launched Fate, offering a small discount code for 36 00:02:01,320 --> 00:02:03,840 Speaker 1: first time buyers helped to bring in a lot of 37 00:02:03,840 --> 00:02:07,320 Speaker 1: new faces who might have otherwise been hesitant to purchase. 38 00:02:07,720 --> 00:02:10,560 Speaker 1: It was a great way to build that initial customer base, 39 00:02:10,600 --> 00:02:12,240 Speaker 1: and I remember I went pretty hard on it and 40 00:02:12,280 --> 00:02:14,840 Speaker 1: promoted the fact that we are launching and you can 41 00:02:14,840 --> 00:02:19,000 Speaker 1: have a discount on the launch next, boosting sales is 42 00:02:19,240 --> 00:02:23,519 Speaker 1: another major benefit. Limited time offers and special discount codes 43 00:02:23,560 --> 00:02:26,720 Speaker 1: can create a sense of urgency. Think about it. When 44 00:02:26,760 --> 00:02:30,320 Speaker 1: you know that discount is only available for a short period, 45 00:02:30,680 --> 00:02:34,240 Speaker 1: you're more likely to make a purchase sooner rather than later. 46 00:02:34,760 --> 00:02:38,560 Speaker 1: This urgency can lead to a significant spike in sales, 47 00:02:38,919 --> 00:02:43,080 Speaker 1: especially during slow periods or around major shopping holidays like 48 00:02:43,200 --> 00:02:47,160 Speaker 1: Black Friday and Cyber Monday. Discount codes are obviously also 49 00:02:47,280 --> 00:02:52,239 Speaker 1: a brilliant tool for building customer loyalty. Offering exclusive discounts 50 00:02:52,440 --> 00:02:54,680 Speaker 1: to repeat customers or those that sign up to your 51 00:02:54,680 --> 00:02:59,000 Speaker 1: newsletter can make them feel valued and appreciated. For instance, 52 00:02:59,120 --> 00:03:01,960 Speaker 1: sending a thank you discount code to loyal customers after 53 00:03:01,960 --> 00:03:05,640 Speaker 1: their third or fourth purchase can encourage repeat business and 54 00:03:05,720 --> 00:03:08,959 Speaker 1: foster a stronger connection with your brand. It's a simple 55 00:03:09,000 --> 00:03:11,640 Speaker 1: way to show that you recognize and value their loyalty. 56 00:03:12,040 --> 00:03:16,560 Speaker 1: Another powerful use of discount codes is in clearing inventory. 57 00:03:17,040 --> 00:03:19,760 Speaker 1: Every business has those items that just don't move as 58 00:03:19,800 --> 00:03:23,080 Speaker 1: quickly as other ones. Offering a discount on these slower 59 00:03:23,120 --> 00:03:26,160 Speaker 1: selling products can help free up space in your inventory 60 00:03:26,440 --> 00:03:30,320 Speaker 1: and generate some quick cash flow. This strategy is particularly 61 00:03:30,400 --> 00:03:33,720 Speaker 1: useful for seasonal items or end of line products that 62 00:03:33,760 --> 00:03:36,720 Speaker 1: you want to clear out before new stock arise. Let's 63 00:03:36,760 --> 00:03:39,520 Speaker 1: also not forget, and this is probably the most important one, 64 00:03:39,640 --> 00:03:44,680 Speaker 1: the psychological impact of discount codes. Everyone loves a good deal, 65 00:03:45,200 --> 00:03:48,880 Speaker 1: and the thrill of getting a discount code can enhance 66 00:03:48,920 --> 00:03:52,840 Speaker 1: the overall shopping experience for your customers. This positive experience 67 00:03:52,880 --> 00:03:56,400 Speaker 1: can lead to word of mouth referrals, as happy customers 68 00:03:56,440 --> 00:03:59,320 Speaker 1: are likely to share their good deals with friends and family, 69 00:04:00,120 --> 00:04:02,480 Speaker 1: spreading awareness of your brand. You know, oh, I just 70 00:04:02,520 --> 00:04:04,840 Speaker 1: found this code for Fate. It's twenty percent off here. 71 00:04:04,880 --> 00:04:06,560 Speaker 1: You should use it as well, because I know you 72 00:04:06,640 --> 00:04:10,320 Speaker 1: love Fate. It's very powerful in that way. Discount codes 73 00:04:10,360 --> 00:04:15,080 Speaker 1: in general can be incredibly powerful tools for attracting new customers, 74 00:04:15,240 --> 00:04:19,680 Speaker 1: boosting your sales, building loyalty, clearing inventory, and creating a 75 00:04:19,720 --> 00:04:25,200 Speaker 1: positive shopping experience. But as we all know, every silver 76 00:04:25,279 --> 00:04:29,080 Speaker 1: lining has its clout, and discount codes are no exception. 77 00:04:29,720 --> 00:04:33,640 Speaker 1: What are some of the downfalls or negatives of discount codes. 78 00:04:34,120 --> 00:04:36,279 Speaker 1: I like to think that, thanks to the power of 79 00:04:36,360 --> 00:04:39,040 Speaker 1: social media, which we all love, we are living in 80 00:04:39,080 --> 00:04:42,200 Speaker 1: a world where a lot of people have and I 81 00:04:42,200 --> 00:04:45,560 Speaker 1: think I made this up a thing called the discount 82 00:04:45,600 --> 00:04:49,560 Speaker 1: code mentality. As I mentioned earlier. Everyone loves a bargain, 83 00:04:50,000 --> 00:04:53,760 Speaker 1: everyone loves a sale, and everyone loves a discount. And 84 00:04:54,000 --> 00:04:57,200 Speaker 1: as much as I myself love a discount code and 85 00:04:57,560 --> 00:05:00,560 Speaker 1: we use them within our business, I almost hate that 86 00:05:00,640 --> 00:05:04,120 Speaker 1: it's generally the smaller businesses that are expected to fork 87 00:05:04,160 --> 00:05:06,839 Speaker 1: out the most amount of discounts. One of the realities 88 00:05:06,920 --> 00:05:10,919 Speaker 1: of running a small business is that you're generally going 89 00:05:10,920 --> 00:05:15,799 Speaker 1: to have low profit margins compared to huge companies. Everything's 90 00:05:15,839 --> 00:05:18,640 Speaker 1: so expensive. You're just trying to get ahead, you're just 91 00:05:18,680 --> 00:05:21,359 Speaker 1: getting started even and you're building up your brand on 92 00:05:21,440 --> 00:05:25,320 Speaker 1: social media, like promoting your small business. Business owners, especially 93 00:05:25,360 --> 00:05:28,200 Speaker 1: small business owners, are struggling to make ends meet and 94 00:05:28,279 --> 00:05:30,719 Speaker 1: keep their business growing. But the thing that bugs me 95 00:05:30,760 --> 00:05:32,960 Speaker 1: the most, and I think it's because of social media, 96 00:05:33,160 --> 00:05:36,880 Speaker 1: is the first business that people will go to to ask, 97 00:05:37,000 --> 00:05:40,200 Speaker 1: hey can I have a discount code? Is a small business? 98 00:05:40,360 --> 00:05:43,080 Speaker 1: Like that's what pisces me off, Like, hey can I 99 00:05:43,080 --> 00:05:45,440 Speaker 1: have a code? And they're like a business that's just 100 00:05:45,480 --> 00:05:47,640 Speaker 1: trying to build themselves up off the ground, like never 101 00:05:48,279 --> 00:05:51,440 Speaker 1: do we see And it's because of social media, Like 102 00:05:51,480 --> 00:05:53,960 Speaker 1: you would be surprised how people message me saying, hey, 103 00:05:54,240 --> 00:05:56,279 Speaker 1: do you have a discount code, and like I see 104 00:05:56,279 --> 00:05:58,080 Speaker 1: that as a compliment, like they want to shop with me, 105 00:05:58,480 --> 00:06:00,520 Speaker 1: But it's also like you're going to a business and saying, hey, 106 00:06:00,560 --> 00:06:01,960 Speaker 1: I want to buy your products, but like can you 107 00:06:02,000 --> 00:06:04,120 Speaker 1: give them to me cheaper? And I think what I 108 00:06:04,120 --> 00:06:07,200 Speaker 1: would love to see more of is people using that 109 00:06:07,279 --> 00:06:11,280 Speaker 1: discount code mentality that we have, but towards the big dogs, 110 00:06:11,800 --> 00:06:15,599 Speaker 1: like ask your electrical provider for a discount code, or 111 00:06:15,720 --> 00:06:18,080 Speaker 1: go to your groceries and like go to the owner 112 00:06:18,080 --> 00:06:19,840 Speaker 1: of the grocery store and say can I have a 113 00:06:19,880 --> 00:06:21,720 Speaker 1: discount code? That you would never do that. You would 114 00:06:21,760 --> 00:06:24,440 Speaker 1: never walk into a supermarket and go up to the 115 00:06:24,440 --> 00:06:26,200 Speaker 1: boss and say, hey, can I have a discount code? 116 00:06:26,240 --> 00:06:29,160 Speaker 1: But they'll message a small business on Instagram, hey can 117 00:06:29,200 --> 00:06:31,360 Speaker 1: I have a discount code? People wouldn't go to their 118 00:06:31,360 --> 00:06:33,360 Speaker 1: local butchers and say hey, can I have a discount code? 119 00:06:33,360 --> 00:06:36,560 Speaker 1: But because of social media, people are so comfortable like 120 00:06:36,680 --> 00:06:38,839 Speaker 1: asking a business owner for a discount. They'd never do 121 00:06:38,880 --> 00:06:40,400 Speaker 1: it in real life and they wouldn't do it to 122 00:06:40,960 --> 00:06:43,480 Speaker 1: the big companies. It's always the small businesses that get 123 00:06:43,520 --> 00:06:46,000 Speaker 1: asked for the most amount of discounts. One thing that 124 00:06:46,080 --> 00:06:48,240 Speaker 1: being in business has taught me and it's opened my 125 00:06:48,279 --> 00:06:51,960 Speaker 1: eyes to is that businesses, especially small ones, price their 126 00:06:51,960 --> 00:06:54,240 Speaker 1: items at a figure that is going to keep their 127 00:06:54,279 --> 00:06:57,760 Speaker 1: business going. That is literally how we price products in business. 128 00:06:57,800 --> 00:07:00,520 Speaker 1: It's not because I mean, some people might them it's 129 00:07:00,560 --> 00:07:02,800 Speaker 1: something crazy because they want to sell it at that, 130 00:07:02,960 --> 00:07:05,800 Speaker 1: But for most businesses, the way that we're pricing address 131 00:07:06,320 --> 00:07:09,000 Speaker 1: it's calculated at a price that's going to keep us 132 00:07:09,040 --> 00:07:11,040 Speaker 1: moving forward. It's like, oh, I'm just going to make 133 00:07:11,080 --> 00:07:13,400 Speaker 1: this dress one hundred and ten dollars cause like it's 134 00:07:13,440 --> 00:07:16,960 Speaker 1: a mathematical equation to get it to that number. I 135 00:07:17,000 --> 00:07:19,760 Speaker 1: think that this is something that we as consumers can 136 00:07:19,800 --> 00:07:22,239 Speaker 1: often forget when reaching out to a business and asking 137 00:07:22,280 --> 00:07:24,800 Speaker 1: for a discount. Our piece is a price the way 138 00:07:24,800 --> 00:07:27,120 Speaker 1: that they are not only to reflect their high quality, 139 00:07:27,440 --> 00:07:31,200 Speaker 1: but also to ensure our business doesn't go backwards. I 140 00:07:31,240 --> 00:07:33,640 Speaker 1: price my pieces with enough of a margin that I 141 00:07:33,640 --> 00:07:36,480 Speaker 1: can cover all of our expenses and then have enough 142 00:07:36,520 --> 00:07:39,920 Speaker 1: money over to fund the next round of production so 143 00:07:39,960 --> 00:07:42,800 Speaker 1: we can continue to come out with new pieces and collections. 144 00:07:42,920 --> 00:07:45,760 Speaker 1: When I'm doing my pricing, I'm never and maybe some 145 00:07:45,800 --> 00:07:48,480 Speaker 1: people do, and maybe I should, but I'm never going 146 00:07:48,520 --> 00:07:51,160 Speaker 1: on and I'm going to add twenty percent in case 147 00:07:51,200 --> 00:07:53,440 Speaker 1: I ever do a twenty percent off discount code, or 148 00:07:53,480 --> 00:07:55,080 Speaker 1: I'm going to add ten percent in case we do 149 00:07:55,120 --> 00:07:56,920 Speaker 1: a ten percent off code. Like that's not factored into 150 00:07:56,920 --> 00:07:59,120 Speaker 1: the way that I price my clothes, but maybe it 151 00:07:59,600 --> 00:08:02,240 Speaker 1: needs to be because of how many people really, really 152 00:08:02,240 --> 00:08:04,360 Speaker 1: really want a discount code. And I don't want anyone 153 00:08:04,400 --> 00:08:06,440 Speaker 1: to take this wrong way. Like I understand why people 154 00:08:06,440 --> 00:08:08,520 Speaker 1: want discount codes. People want to be able to shop 155 00:08:08,560 --> 00:08:11,320 Speaker 1: with businesses and support small businesses, but they love getting 156 00:08:11,360 --> 00:08:13,240 Speaker 1: a discount. I don't think it's a negative thing, but 157 00:08:13,240 --> 00:08:15,280 Speaker 1: I think it's something to be mindful of when you 158 00:08:15,320 --> 00:08:17,440 Speaker 1: are reaching out to that small businesses. Would you go 159 00:08:17,440 --> 00:08:19,680 Speaker 1: to your local butchers and us the same. I've even 160 00:08:19,680 --> 00:08:22,720 Speaker 1: made some comments sometimes when people have sent me a 161 00:08:22,800 --> 00:08:25,400 Speaker 1: DM saying hey, can I have a discount code? Or 162 00:08:25,760 --> 00:08:27,960 Speaker 1: I've even had someone ask me to my face in 163 00:08:28,400 --> 00:08:32,720 Speaker 1: our store, which I found so weird and abrupt. But 164 00:08:32,800 --> 00:08:35,000 Speaker 1: sometimes I have fun with it, and I'll write back 165 00:08:35,040 --> 00:08:37,640 Speaker 1: a cheeky comment or reply to a DM and I'll 166 00:08:37,679 --> 00:08:41,440 Speaker 1: say something along the lines of no, you should pay 167 00:08:41,480 --> 00:08:43,440 Speaker 1: full price with like a little winky face, or I 168 00:08:43,480 --> 00:08:46,240 Speaker 1: promise our pieces are worth what we charge for them, 169 00:08:46,559 --> 00:08:49,479 Speaker 1: like kind of making fun and light of the situation 170 00:08:49,559 --> 00:08:52,400 Speaker 1: because it's it's true. Like I know, I can only 171 00:08:52,440 --> 00:08:55,640 Speaker 1: speak for me and my own business, but the pieces 172 00:08:55,679 --> 00:08:58,760 Speaker 1: are priced at a price that reflects them for their 173 00:08:58,840 --> 00:09:01,880 Speaker 1: value and their quality, and it's also helping my business 174 00:09:01,960 --> 00:09:05,959 Speaker 1: move forward. If we were continuously handing out discount code 175 00:09:06,000 --> 00:09:08,880 Speaker 1: after discount code after discount code, like, you're going to 176 00:09:08,960 --> 00:09:16,520 Speaker 1: end up sending your business backwards. So what are some 177 00:09:16,640 --> 00:09:20,040 Speaker 1: of the negative impacts that discount codes may potentially have 178 00:09:20,640 --> 00:09:25,040 Speaker 1: on any business? First, let's talk about eroding profit margins. 179 00:09:25,440 --> 00:09:29,080 Speaker 1: Every time you offer a discount, you're reducing the amount 180 00:09:29,120 --> 00:09:32,000 Speaker 1: of profit you make on each sale. And I'm not 181 00:09:32,000 --> 00:09:34,440 Speaker 1: talking about profits to put in your own pocket, but 182 00:09:34,679 --> 00:09:38,040 Speaker 1: profits to keep your business moving forward. For small businesses 183 00:09:38,040 --> 00:09:41,959 Speaker 1: with tight budgets, this can be particularly problematic if you're 184 00:09:42,000 --> 00:09:45,240 Speaker 1: not careful, those discounts can quickly add up and eat 185 00:09:45,400 --> 00:09:48,839 Speaker 1: into your bottom line. While a discount code might drive 186 00:09:48,960 --> 00:09:52,240 Speaker 1: a surge in sales, it's crucial to ensure that the 187 00:09:52,320 --> 00:09:55,560 Speaker 1: reduced profit per sale is still enough to cover your 188 00:09:55,559 --> 00:09:58,360 Speaker 1: costs and leave you with a healthy margin to then 189 00:09:58,440 --> 00:10:01,760 Speaker 1: continue moving your business. Form I remember There was a 190 00:10:01,800 --> 00:10:05,680 Speaker 1: period at Fate where we offered frequent discounts to keep 191 00:10:05,720 --> 00:10:09,560 Speaker 1: sales moving, and whilst it boosted our revenue, we soon 192 00:10:09,640 --> 00:10:12,080 Speaker 1: realized that our profit margins were taking a hit, so 193 00:10:12,120 --> 00:10:15,200 Speaker 1: we had to reassess our strategy to ensure that we 194 00:10:15,200 --> 00:10:20,400 Speaker 1: weren't sacrificing long term profitability for short term gains. That's 195 00:10:20,440 --> 00:10:22,000 Speaker 1: something to be really mindful of to all of you 196 00:10:22,080 --> 00:10:25,199 Speaker 1: owners out there. We definitely want to be offering discounts 197 00:10:25,240 --> 00:10:28,520 Speaker 1: to our customers, but be mindful with how often that 198 00:10:28,559 --> 00:10:32,120 Speaker 1: you're doing it. Next, there's the risk of creating a 199 00:10:32,360 --> 00:10:37,160 Speaker 1: discount driven culture. If customers get used to seeing Frishmrent 200 00:10:38,040 --> 00:10:41,520 Speaker 1: frequent discounts. You can leave that one in. If your 201 00:10:41,559 --> 00:10:45,080 Speaker 1: customers get used to seeing you doing frequent discounts, they 202 00:10:45,160 --> 00:10:47,560 Speaker 1: may then start to expect them all the time and 203 00:10:47,679 --> 00:10:50,840 Speaker 1: become more and more reluctant to pay full price. And 204 00:10:50,880 --> 00:10:54,120 Speaker 1: I'm sure if you listening right now, think there's probably 205 00:10:54,120 --> 00:10:56,200 Speaker 1: some brands that come to mind when you think of 206 00:10:56,240 --> 00:10:58,559 Speaker 1: discount codes. Like there's some brands that are just known 207 00:10:58,679 --> 00:11:02,080 Speaker 1: for constantly doing sales and always having discount codes, and 208 00:11:02,120 --> 00:11:04,240 Speaker 1: that kind of gives you a different perception of that 209 00:11:04,360 --> 00:11:07,120 Speaker 1: brand in your head, like they will think of you 210 00:11:07,280 --> 00:11:10,000 Speaker 1: as a brand that's just always on sale or always 211 00:11:10,000 --> 00:11:14,080 Speaker 1: throwing out discount codes. Doing this often can obviously devalue 212 00:11:14,120 --> 00:11:16,920 Speaker 1: your brand and make it harder to sell products at 213 00:11:16,920 --> 00:11:20,200 Speaker 1: a regular price in the future. Over time, customers might 214 00:11:20,280 --> 00:11:23,080 Speaker 1: only make purchases when there is a discount, and there 215 00:11:23,120 --> 00:11:25,280 Speaker 1: are some customers that will only shop with a discount, 216 00:11:25,320 --> 00:11:27,719 Speaker 1: And I'm not against that at all, like you do 217 00:11:27,800 --> 00:11:29,880 Speaker 1: you and if it means only shopping with a brand 218 00:11:29,880 --> 00:11:31,720 Speaker 1: when they do a sale or when they have a discount, 219 00:11:31,720 --> 00:11:34,360 Speaker 1: I'm all for that. But from the business side of things, 220 00:11:34,360 --> 00:11:37,160 Speaker 1: you've got to be mindful of customers perceiving you as 221 00:11:37,200 --> 00:11:40,880 Speaker 1: a discounted brand, and by having codes so often and 222 00:11:40,920 --> 00:11:45,280 Speaker 1: always having sales and discounts, it can lead into inconsistent 223 00:11:45,360 --> 00:11:48,480 Speaker 1: sales patterns, and it can make it difficult to forecast 224 00:11:48,559 --> 00:11:53,280 Speaker 1: revenue accurately if you're always doing discount codes. Constant discounts 225 00:11:53,280 --> 00:11:57,480 Speaker 1: can sometimes make your brand appear less valuable or even cheap. 226 00:11:57,840 --> 00:12:00,679 Speaker 1: If your products are always on sale, customers might start 227 00:12:00,720 --> 00:12:04,440 Speaker 1: to question their true value. This can be particularly damaging 228 00:12:04,480 --> 00:12:07,840 Speaker 1: for premium or high end brands that rely on maintaining 229 00:12:07,920 --> 00:12:11,480 Speaker 1: an image of exclusivity and quality. And I think looking 230 00:12:11,559 --> 00:12:15,560 Speaker 1: at more premium luxurious brands is a great example. When 231 00:12:15,559 --> 00:12:18,200 Speaker 1: do you ever see Louis Verton doing a discount code 232 00:12:18,520 --> 00:12:21,840 Speaker 1: or going on sale, Like look at any big expensive brand. 233 00:12:21,840 --> 00:12:24,040 Speaker 1: They don't do discount codes. And they do that for 234 00:12:24,080 --> 00:12:27,040 Speaker 1: a reason, and people get pissed off with it and say, oh, 235 00:12:27,120 --> 00:12:29,680 Speaker 1: they never do discounts, like this brand never does this. 236 00:12:30,440 --> 00:12:33,319 Speaker 1: Mecha is a great example. They don't do sales. I 237 00:12:33,320 --> 00:12:35,320 Speaker 1: think they have one sale a year and it's Boxing 238 00:12:35,360 --> 00:12:37,559 Speaker 1: day only, and that's their only sale day. And I've 239 00:12:37,600 --> 00:12:40,680 Speaker 1: seen people go there. They don't do discounts like it's 240 00:12:40,720 --> 00:12:44,200 Speaker 1: so annoying. They should, but they're retaining their brand perception 241 00:12:44,320 --> 00:12:46,560 Speaker 1: and value. If they went on sale all the time, 242 00:12:46,559 --> 00:12:49,800 Speaker 1: it creates a different kind of perception of their brand. 243 00:12:49,840 --> 00:12:52,160 Speaker 1: They don't want to have that image. Let's also talk 244 00:12:52,200 --> 00:12:55,200 Speaker 1: about the operational strain that can come with discount codes. 245 00:12:55,559 --> 00:12:58,720 Speaker 1: Offering discounts can lead to a sudden spike in orders, 246 00:12:58,760 --> 00:13:02,040 Speaker 1: which is amazing what we want, but it can put 247 00:13:02,040 --> 00:13:05,439 Speaker 1: a strain on your operations. This includes everything from managing 248 00:13:05,559 --> 00:13:10,239 Speaker 1: increased auder volumes to handling customer service inquiries and shipping logistics. 249 00:13:10,679 --> 00:13:13,800 Speaker 1: If your business isn't prepared for the surge in orders, 250 00:13:14,200 --> 00:13:17,640 Speaker 1: it can lead to delays, mistakes, and ultimately a poor 251 00:13:17,640 --> 00:13:21,160 Speaker 1: customer experience and complaints. And I don't mean to throw 252 00:13:21,480 --> 00:13:24,280 Speaker 1: another fashion brand under the bus by any means, because 253 00:13:24,280 --> 00:13:27,280 Speaker 1: they've done absolutely amazingly. But I think a great example 254 00:13:27,320 --> 00:13:31,480 Speaker 1: of this was Black Friday last year. White Fox Boutique 255 00:13:31,760 --> 00:13:35,360 Speaker 1: blew up because they did their Black Friday sale. It 256 00:13:35,400 --> 00:13:39,480 Speaker 1: was huge, and customers after a couple of weeks started 257 00:13:39,480 --> 00:13:42,200 Speaker 1: complaining on social media because their orders weren't being sent 258 00:13:42,240 --> 00:13:44,839 Speaker 1: out from their Black Friday sales, and it was all 259 00:13:44,880 --> 00:13:46,800 Speaker 1: over social media, Like I'm not here calling them out, 260 00:13:46,840 --> 00:13:50,000 Speaker 1: it was all over social media. The owners were interviewed 261 00:13:50,040 --> 00:13:52,200 Speaker 1: on the news, the News went to their warehouse to 262 00:13:52,240 --> 00:13:55,040 Speaker 1: film like the chaos because they'd had the biggest sale 263 00:13:55,080 --> 00:13:58,080 Speaker 1: that they had ever had, but then they couldn't keep 264 00:13:58,200 --> 00:13:59,719 Speaker 1: up with that demand. So that's one thing you've really 265 00:13:59,720 --> 00:14:02,439 Speaker 1: got to careful of. If you are doing an amazing 266 00:14:02,480 --> 00:14:04,760 Speaker 1: deal or an offer where you know so many orders 267 00:14:04,800 --> 00:14:06,000 Speaker 1: are going to come through, you need to be able 268 00:14:06,040 --> 00:14:08,760 Speaker 1: to prepare for that on the back end. And you 269 00:14:08,800 --> 00:14:10,520 Speaker 1: can google it for yourself and check out what happened 270 00:14:10,520 --> 00:14:13,679 Speaker 1: with White Fox. They had customers waiting for two, three, 271 00:14:13,840 --> 00:14:16,480 Speaker 1: four weeks before their orders were shipped because they couldn't 272 00:14:16,520 --> 00:14:19,560 Speaker 1: keep up with that demand. Another example from quite literally 273 00:14:19,600 --> 00:14:22,760 Speaker 1: just last year was we did our Boxing Day sale 274 00:14:22,960 --> 00:14:25,840 Speaker 1: for Fate and all of our staff have Christmas off, 275 00:14:26,080 --> 00:14:28,480 Speaker 1: like all of our warehouse staff, like it's the way 276 00:14:28,480 --> 00:14:30,280 Speaker 1: we've always done it, Like they all have two weeks 277 00:14:30,320 --> 00:14:32,760 Speaker 1: off over Christmas, like no one is expected to work. 278 00:14:32,760 --> 00:14:34,680 Speaker 1: I know a lot of businesses will do like a 279 00:14:34,720 --> 00:14:37,080 Speaker 1: blackout period during that time and say, you know, this 280 00:14:37,200 --> 00:14:39,080 Speaker 1: is our busiest period, so everyone has to work, But 281 00:14:39,120 --> 00:14:41,280 Speaker 1: we've never done that at Fate, and we do it 282 00:14:41,360 --> 00:14:44,400 Speaker 1: Boxing Day sale every year, and we did it last year, 283 00:14:44,400 --> 00:14:46,840 Speaker 1: and I guess this was our biggest one because you know, 284 00:14:46,880 --> 00:14:50,720 Speaker 1: we're gaining more popularity each year, and so we did 285 00:14:50,760 --> 00:14:53,640 Speaker 1: the sale when everyone was off work. And then Aj 286 00:14:53,800 --> 00:14:56,840 Speaker 1: and I really regretted that because Aj and I like 287 00:14:57,200 --> 00:15:00,680 Speaker 1: we worked all through Boxing Day, Christmas, New Year's and 288 00:15:00,760 --> 00:15:03,880 Speaker 1: it took Aj and I I think two weeks to 289 00:15:03,960 --> 00:15:05,600 Speaker 1: get all of the orders out because it was just 290 00:15:05,720 --> 00:15:07,280 Speaker 1: us too, And that was a great lesson for me, 291 00:15:07,320 --> 00:15:10,840 Speaker 1: and I said next year, we're doing Boxing Day early 292 00:15:11,400 --> 00:15:14,000 Speaker 1: so everyone's still at work in the warehouse, or if 293 00:15:14,040 --> 00:15:16,000 Speaker 1: we do do it on Boxing Day, we're going to 294 00:15:16,040 --> 00:15:18,600 Speaker 1: have some casuals come and help us do it, because 295 00:15:18,880 --> 00:15:21,640 Speaker 1: Boxing Day and Christmas for us was fucked because it 296 00:15:21,680 --> 00:15:23,800 Speaker 1: was just AJ and I and that was a great lesson. 297 00:15:24,320 --> 00:15:28,560 Speaker 1: Another downside with discount codes is the potential for interrupting 298 00:15:28,640 --> 00:15:32,520 Speaker 1: future sales. When you offer a discount code today, it 299 00:15:32,560 --> 00:15:36,600 Speaker 1: can reduce the number of full price sales tomorrow. Customers 300 00:15:36,640 --> 00:15:39,120 Speaker 1: may decide to wait for the next sale instead of 301 00:15:39,160 --> 00:15:42,400 Speaker 1: buying it at full price, which can disrupt your revenue flow. 302 00:15:42,840 --> 00:15:46,320 Speaker 1: This is particularly true if you have frequent or predictable 303 00:15:46,360 --> 00:15:50,160 Speaker 1: sales events. Customers might Customers might hold off on making 304 00:15:50,160 --> 00:15:54,320 Speaker 1: a purchase because they expect another discount to come soon. Lastly, 305 00:15:54,760 --> 00:15:59,160 Speaker 1: let's consider the impact on customer relationships. While discounts can 306 00:15:59,200 --> 00:16:02,840 Speaker 1: attract new customers, they might not always attract the right ones. 307 00:16:03,320 --> 00:16:06,600 Speaker 1: Some customers might only be interested in the discount and 308 00:16:06,640 --> 00:16:09,320 Speaker 1: may not return once the price goes back to its 309 00:16:09,360 --> 00:16:12,720 Speaker 1: regular price. This can lead to a lower customer lifetime 310 00:16:12,800 --> 00:16:16,160 Speaker 1: value and make it harder to build a loyal customer base. 311 00:16:16,200 --> 00:16:18,280 Speaker 1: And as a business owner, that's what you want. You 312 00:16:18,320 --> 00:16:21,400 Speaker 1: want loyal customers who know your product, love it, and 313 00:16:21,520 --> 00:16:24,160 Speaker 1: are happy to pay full price because they understand the 314 00:16:24,240 --> 00:16:27,760 Speaker 1: value of your products. And I think we're really lucky 315 00:16:27,760 --> 00:16:29,160 Speaker 1: in that sense where we do have a lot of 316 00:16:29,160 --> 00:16:31,640 Speaker 1: customers that are happy to pay full price because they 317 00:16:31,880 --> 00:16:34,440 Speaker 1: love the pieces, they love us as a brand, and 318 00:16:34,520 --> 00:16:36,200 Speaker 1: we'll give them a cheeky discount code every now and 319 00:16:36,280 --> 00:16:38,640 Speaker 1: then they'll absolutely lap it up and love it. To 320 00:16:38,720 --> 00:16:41,280 Speaker 1: sum up, I guess these key talking points. While discount 321 00:16:41,320 --> 00:16:44,040 Speaker 1: codes can be a powerful tool for driving sales and 322 00:16:44,080 --> 00:16:48,520 Speaker 1: attracting customers, they can also come with significant risks when 323 00:16:48,560 --> 00:16:51,400 Speaker 1: it comes to discount codes. It's crucial to weigh these 324 00:16:51,520 --> 00:16:55,800 Speaker 1: risks against the benefits and use discount codes strategically to 325 00:16:55,960 --> 00:16:59,360 Speaker 1: ensure that they help your business rather than hinder it. 326 00:17:03,600 --> 00:17:06,359 Speaker 1: So now that we've covered both the powerful benefits and 327 00:17:06,440 --> 00:17:10,080 Speaker 1: the potential downsides of discount codes, it's time to explore 328 00:17:10,200 --> 00:17:13,399 Speaker 1: how to strike the right balance. This is crucial for 329 00:17:13,520 --> 00:17:18,560 Speaker 1: ensuring that your discount strategy boosts your business without undermining it. Firstly, 330 00:17:18,720 --> 00:17:21,679 Speaker 1: let's talk about setting clear goals for your discount codes 331 00:17:21,960 --> 00:17:25,440 Speaker 1: before you launch any discount campaign. It's essential to know 332 00:17:25,480 --> 00:17:28,040 Speaker 1: what it is that you're trying to achieve. Are you 333 00:17:28,080 --> 00:17:31,320 Speaker 1: looking to attract new customers? Do you want to boost 334 00:17:31,320 --> 00:17:33,879 Speaker 1: sales because maybe you're in a slow period. Do you 335 00:17:33,920 --> 00:17:36,880 Speaker 1: want to clear out excess inventory? Which is what we 336 00:17:36,920 --> 00:17:38,520 Speaker 1: do at FATE. When we get to a certain point 337 00:17:38,560 --> 00:17:40,560 Speaker 1: where we're like, let's are out a discount because our 338 00:17:40,600 --> 00:17:43,280 Speaker 1: inventory levels are becoming a little high. That's a great 339 00:17:43,320 --> 00:17:45,960 Speaker 1: moment to then chuck in a discount code. By setting 340 00:17:46,000 --> 00:17:50,000 Speaker 1: specific goals, you can tailor your discount code strategy to 341 00:17:50,080 --> 00:17:53,680 Speaker 1: meet these objectives without going overboard. When we launch discount 342 00:17:53,760 --> 00:17:56,720 Speaker 1: campaigns at FATE, we always have a clear purpose, whether 343 00:17:56,760 --> 00:18:00,240 Speaker 1: it was to move seasonal stock or reward loyal customers. 344 00:18:00,560 --> 00:18:03,960 Speaker 1: Having a defined goal helps us measure the success of 345 00:18:04,000 --> 00:18:09,439 Speaker 1: each discount campaign and adjust our strategy accordingly. Next, you 346 00:18:09,520 --> 00:18:13,560 Speaker 1: need to consider limiting the frequency and duration of your discounts, 347 00:18:13,560 --> 00:18:15,399 Speaker 1: which I know I've already touched on, but this is 348 00:18:15,440 --> 00:18:19,440 Speaker 1: me and my strategy part of this episode. Frequent discount codes, 349 00:18:19,480 --> 00:18:22,600 Speaker 1: as I've mentioned, can train customers to wait for sales. 350 00:18:23,080 --> 00:18:25,880 Speaker 1: To avoid this, what you need to do is keep 351 00:18:26,000 --> 00:18:32,320 Speaker 1: discounts special and infrequent. Consider offering discounts during specific times 352 00:18:32,320 --> 00:18:35,760 Speaker 1: of the year, such as major holidays or anniversary sales. 353 00:18:35,760 --> 00:18:38,760 Speaker 1: Maybe it's your brand's two year anniversary, you can do 354 00:18:38,800 --> 00:18:42,119 Speaker 1: a discount code. Then, limiting the duration of your discounts 355 00:18:42,200 --> 00:18:45,520 Speaker 1: can also create a sense of urgency without making them 356 00:18:45,560 --> 00:18:48,960 Speaker 1: a constant expectation. For example, this code is active for 357 00:18:49,000 --> 00:18:52,359 Speaker 1: twenty four hours only. Another strategy that you can use 358 00:18:52,560 --> 00:18:57,159 Speaker 1: is personalizing your discounts. Instead of broad, sweeping discounts that 359 00:18:57,200 --> 00:19:01,119 Speaker 1: apply to everyone, you can consider offering dis discounts based 360 00:19:01,160 --> 00:19:04,840 Speaker 1: on customer behavior and preferences. For example, you might offer 361 00:19:04,880 --> 00:19:08,040 Speaker 1: a discount on a customer's birthday, or give a special 362 00:19:08,080 --> 00:19:11,719 Speaker 1: discount to customers who have made multiple purchases. This approach 363 00:19:11,800 --> 00:19:15,080 Speaker 1: not only feels more exclusive, but fosters a deeper connection 364 00:19:15,119 --> 00:19:17,080 Speaker 1: with your customers. And this is something that we do 365 00:19:17,119 --> 00:19:20,280 Speaker 1: at FATE. We reach out to customers when we notice 366 00:19:20,280 --> 00:19:22,560 Speaker 1: that they've placed so many orders, and we send them 367 00:19:22,560 --> 00:19:24,320 Speaker 1: an email and say, hey, I just want to reach 368 00:19:24,320 --> 00:19:26,520 Speaker 1: out and say thank you so much for placing your 369 00:19:26,600 --> 00:19:30,120 Speaker 1: seventh order with us. It's acknowledging that we see the customer, 370 00:19:30,200 --> 00:19:32,280 Speaker 1: that we see them ordering with us, and here is 371 00:19:32,320 --> 00:19:34,720 Speaker 1: your exclusive discount code. Just for you and make the 372 00:19:34,720 --> 00:19:38,040 Speaker 1: discount code thank you so much, Jess, and then they'll 373 00:19:38,080 --> 00:19:40,360 Speaker 1: be like, wow, this feels really special to me, Like, yes, 374 00:19:40,400 --> 00:19:42,080 Speaker 1: it is a discount code, but it's just for me. 375 00:19:42,520 --> 00:19:45,280 Speaker 1: And you're still, you know, giving out that discount potentially 376 00:19:45,280 --> 00:19:48,159 Speaker 1: getting another sale, but you're creating a relationship with that 377 00:19:48,200 --> 00:19:52,080 Speaker 1: customer and making them feel special. Another effective approach is 378 00:19:52,119 --> 00:19:55,920 Speaker 1: to combine discounts with other value adds. Instead of relying 379 00:19:55,960 --> 00:19:59,840 Speaker 1: solely on price reduction, you can consider bundling discounts with 380 00:19:59,840 --> 00:20:03,200 Speaker 1: a additional perks, such as use this code for free shipping, 381 00:20:03,520 --> 00:20:05,920 Speaker 1: or you can do a gift with purchase. This can 382 00:20:06,000 --> 00:20:09,040 Speaker 1: enhance the perceived value of your offer without cutting two 383 00:20:09,200 --> 00:20:14,199 Speaker 1: deeply into your profit margins. Also think about implementing tiered 384 00:20:14,240 --> 00:20:18,840 Speaker 1: discount structures. This means offering bigger discounts for larger purchases, 385 00:20:18,880 --> 00:20:21,040 Speaker 1: and you'll see brands doing this a lot. You might 386 00:20:21,119 --> 00:20:24,960 Speaker 1: do ten percent off orders over fifty, fifteen percent off 387 00:20:25,119 --> 00:20:27,600 Speaker 1: orders over one hundred, and twenty percent off for orders 388 00:20:27,680 --> 00:20:30,720 Speaker 1: over one hundred and fifty dollars. This encourages customers to 389 00:20:30,720 --> 00:20:33,960 Speaker 1: spend more to unlock higher discounts, which then will boost 390 00:20:34,000 --> 00:20:37,439 Speaker 1: your average order value and still provides those savings to 391 00:20:37,480 --> 00:20:42,000 Speaker 1: the customer. Finally, remember to maintain the integrity of your brand. 392 00:20:42,400 --> 00:20:45,600 Speaker 1: Discounts should never undermine the perception of your products or 393 00:20:45,640 --> 00:20:49,080 Speaker 1: your business. Ensure that your discount campaigns align with your 394 00:20:49,119 --> 00:20:53,159 Speaker 1: brand values. In messaging, communicate clearly with your customers about 395 00:20:53,200 --> 00:20:55,680 Speaker 1: why you're offering the discount and what it means for them. 396 00:20:56,000 --> 00:20:59,439 Speaker 1: Transparency and honesty go a long way in maintaining trust 397 00:20:59,480 --> 00:21:02,359 Speaker 1: and loyalty. So all in all, when it comes to 398 00:21:02,400 --> 00:21:06,680 Speaker 1: discount codes, striking the right balance with discount codes involves 399 00:21:06,720 --> 00:21:11,960 Speaker 1: a strategic approach. By setting clear goals, limiting frequency, personalizing 400 00:21:11,960 --> 00:21:16,160 Speaker 1: your offers, monitoring the performance, combining discounts with other perks, 401 00:21:16,520 --> 00:21:20,600 Speaker 1: implementing teared structures, and maintaining your brand integrity, you can 402 00:21:20,680 --> 00:21:25,840 Speaker 1: maximize the benefits of discount codes whilst minimizing their downsides. Anyway, 403 00:21:25,840 --> 00:21:29,040 Speaker 1: my friends, that is another episode of big Business wrapped 404 00:21:29,119 --> 00:21:32,280 Speaker 1: up on the power and pitfalls of discount codes. I 405 00:21:32,280 --> 00:21:36,000 Speaker 1: hope you found this discussion insightful, and for those of 406 00:21:36,000 --> 00:21:37,720 Speaker 1: you who are business owners out there, I hope you're 407 00:21:37,760 --> 00:21:41,080 Speaker 1: now feeling equipped with some practical strategies to use discounts. 408 00:21:41,080 --> 00:21:44,800 Speaker 1: Effectively in your business and remember it's all about balance 409 00:21:44,880 --> 00:21:47,720 Speaker 1: and strategic thinking. And for all of you non business 410 00:21:47,720 --> 00:21:49,880 Speaker 1: owners out there, I hope this has opened your eyes 411 00:21:49,960 --> 00:21:53,040 Speaker 1: little into the world of discount codes and maybe you'll 412 00:21:53,040 --> 00:21:56,159 Speaker 1: think twice before dming that business owner to ask for 413 00:21:56,200 --> 00:21:59,480 Speaker 1: a discount. As always, i'd love to hear your thoughts 414 00:21:59,520 --> 00:22:02,440 Speaker 1: and experiences with discount codes. Have you tried any of 415 00:22:02,480 --> 00:22:05,480 Speaker 1: these strategies or some creative ones of your own, What 416 00:22:05,640 --> 00:22:07,520 Speaker 1: has worked for you and what hasn't dropped me a 417 00:22:07,600 --> 00:22:11,000 Speaker 1: DM in my Big Business Podcast Instagram account, And as always, 418 00:22:11,000 --> 00:22:12,520 Speaker 1: I'm going to leave you with my tip of the week, 419 00:22:12,680 --> 00:22:16,120 Speaker 1: which is support small businesses as much as you can, 420 00:22:16,800 --> 00:22:18,919 Speaker 1: and maybe when you are scouring the internet for that 421 00:22:18,960 --> 00:22:21,840 Speaker 1: discount code, which I'm all for obviously, but maybe every 422 00:22:21,840 --> 00:22:24,680 Speaker 1: now and then, if it is within your means, buy 423 00:22:24,840 --> 00:22:27,840 Speaker 1: that item or support that business at full price because 424 00:22:27,840 --> 00:22:30,760 Speaker 1: they've priced it at that price. How many times can 425 00:22:30,800 --> 00:22:34,360 Speaker 1: I say price for a reason? And as always, remember 426 00:22:34,480 --> 00:22:40,000 Speaker 1: to chase after your dreams as if they owe you money.