Rethink Price Discounting –Farquharson/Tedesco

Since the store opened, the actual redeemed discount percentage has run at about 4 percent, netting a 6 percent price premium. Also, customers are getting a deal on the best stuff in town, making this a mutually beneficial business relationship.

This "froyo" experience has got us thinking. Discounting doesn't have to be reactive and fear-based. It can be proactive, intelligent and aimed at accomplishing a specific business objective. Strategic discounting has the potential to boost profits, grow share of customer and even improve plant efficiency.