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28.11.2015
This is the time for sales and promotions around the world, from the madness of Black Friday to the January Sales that promise to give us so much more for so much less. In reading through the (limited) literature on the psychology of pricing and the impact of pricing on brands, I have found (at least) ten good reasons why promotions and sales are bad for brands and business. However well you promote your offer, many shoppers may be unaware of it, even if they buy the brand. Sales and promotions have dubious ROI (return on investment) as often the hidden costs are higher than any benefit from the promotion (see the next point), and benefits only accrue from a very small proportion of the buyers. There are many hidden costs, and particularly the loss of profit margin from sales that would have happened anyway. When you discount your price, the incremental sales needed to recover lost revenues are disproportionate to the discount offered. Shoppers don’t often know what they pay for products (in some studies more than 50% of shoppers were unable to say the usual price of a purchased product with reasonable accuracy, and the percentage was worse for infrequently purchased categories). Promotions just move sales forward, but do not increase total sales volumes, giving manufacturers a short-term lift but making sales and revenues more volatile and less profitable.
All of these arguments make it clear that promotions and sales do more harm than good to long-term brand building, and favour the retailer above the manufacturer.
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Maintain contact with existing and prospective clients including executives, boards, managers and key decision makers.


Foster strong relationships with with present accounts in order to produce a source of new business.
Serve as a consulting partner that learns customers needs and provides appropriate solutions and services.
Research products in order to differentiate between company software and competitors, explaining how company products are more beneficial. Software Engineer Resume ExampleSoftware Engineering Resume Example for Software Engineering professional. Research shows that only around half of shoppers actually know that items they buy are on promotion to sale meaning that the promotion had no impact on their behaviour (for example, at least 40% of buyers would have bought the item anyway, promotion or no promotion).
In one study of 3,000 promotions cited by Sorensen (see below) only on-third of sales were truly extra sales, and two-thirds of sales came from the loss of margin from those who would have bought the brand anyway.
For example, consider a brand sold at $1 with 25% profit – if a promotion offers a price of 90 cents (10% discount), this leads to a 40% loss in profit requiring a 67% increase in sales to cover the costs. The evidence is clear and loud – if you want to build a brand, build based on the value of the brand not the price of the product. The writer uses bulleted lists to focus on real achievements with quantified results in % gains and procurement of multi-million dollar revenues.
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