Setting a very low price on one product can bring in new customers. This is a great strategy to promote one particular product. You can also select a product you know you have a higher margin on and can give away a bigger discount on, to bring in traffic. Often customers who are placing an order, encouraged by the offer, may buy other products as well. The flagship product at a lower price is not only a great way to sell out that product but also to attract more visitors and more sales in general. This is also a great strategy for selling out slow-moving products or older product versions.
- Limit the number of products available per customer. You are risking customers buying multiple products at the promotional price and reselling it once your price goes back up.
- Keep such promotions short-lived to urge customers to use the offer.
- If you plan to run such promotions regularly, change which product is on promotion, as customers may perceive the value of your product as lower, if you constantly offer it at a lower price.