- Richard Charlie
- July 8, 2020
The phrase hook, line and sinker has become the foundation of any marketing strategy for every kind of business.
It means the coercing peopling doing something that would not do otherwise.
I would say that it sums up the entire concept of marketing. Every marketer in the world tries to influence, persuade and force his customers into becoming compelled to buy whatever he is offering.
Many a time, the customer does not even have the need to buy the product, but he still ends up buying it, and that is hook, line and sinker for you.
You have a phone, it works well enough, it looks good enough, and it performs all its functions as smoothly as a phone can. And then, Apple launches a new phone that makes you want to buy, but you can’t since it is too pricey.
However, if you got to know that the company has reduced the price of the phone, even if just 50 pounds, you would be compelled to cease that price and make the phone yours.
You would not even if you have to get a personal loan in Belgium to pay for that, at least you saved money.
This, my friend, is the power of marketing’s most influential tool, which is referred to as discounting.
Discounts, Deals and SALE!
Have you ever heard a friend boasting about what a deal he got at the clothing store? A pair of shoes that would generally cost as much as £500, he bought them for half the price.
Something like this may have happened to you even, if not your friend.
Discounts, deals and the sale sign and consumers are like the opposite ends of the magnet. One is the North Pole, and the other is the south, and they are bound to become attracted, science says this, not me.
This concept also works a great deal because we love to save money. Even the richest of the rich will not shy away from a discount, and it is a fact.
I’ll give you an illustration;
There are two products;
One has a value of £200 on the dot, with no discount;
and the other has an MRP of £450, but it is on sale, with a 50% discount. So it would be priced at £225.
Now if you had to choose between these two products, you are bound to choose the one with more value, even if you have to pay 25 pounds extra.
It is because humans equate quality to money; something that is priced at £450 is going to be superior in quality than the 200-pound item. You would not have paid that kind of money without the discount, but the 50% made that item fall into your pocket’s bracket. Once that happens that paying a little more than you would have wanted to would work because you got a deal!!
Now that we have discussed the customer’s perspective let us understand how the seller benefits from the discount.
- The Margin
Every product that a manufacturer makes is priced at a level that earns him a profit. This margin could be 10% to as much as 80%. So when the seller provides a discount, he is not losing money.
Yes, he may not be making as much profit as he would have without the sale price, but he is earning a profit nonetheless. And that is the end aim of the product.
- The Higher Sales
Like we have already established, a product that is on sale is a product that would sell more. Even if the producer’s product is slightly defected, with a few scratches and dents, the reduced price can turn the flaws in manufacturing a sale.
With this, the producers would make more sales and do you know what happens then? More revenue is generated, leading to higher profits.
- The Quality
Once the consumer has bought your product and used it, he would want more. You never have only one chocolate in your life; that would be preposterous at the least.
So, if you provide the right quality products, then even if you remove the discount from the equation, the customer would still buy it. It is because the consumer has fallen in love with your product and no one else can satiate that love, but you and your product, so he would keep coming back for more.
Sinking Into the Consumer’s Mind
Every marketer has one goal to make the consumer fall for the charms he is offering him. And discounts, offers, deals and the highly appealing sale sign makes that goal come to fruition.
For a lender, the low-interest rates will make the borrower take on a cash loan in Belgium. Once he has taken them and witnessed the ease, convenience and benefits of these loans, the next time he needs a loan, he would 100% come to you, because you, as a lender have sunk yourself into his life and his needs.