Special offers

Special offers are short-term incentives that give customers a better deal for a limited time. They can be a price reduction, such as £6 off a rucksack, or extra product for the same price, such as a free bag of popcorn with every cinema ticket bought this weekend.

Why businesses use them

They can encourage trial because a lower price or free extra makes customers more willing to try a product. They can also increase short-term sales, clear old stock before new products arrive and attract price-sensitive customers who compare deals carefully. For example, you might see a garden centre take 15% off every garden bench and patio set in the last week of September to clear space for Christmas stock and attract bargain hunters.

Drawbacks

A price reduction means each sale brings in less revenue per unit (the money received for each item sold). A free extra means the business gives more for the same money, so costs per sale rise. Either way, the business needs enough extra sales to make the offer worthwhile. Frequent discounts can damage a premium image — a reputation for high quality and high price — because customers may question the value or wait for the next deal. Rivals can also copy an offer quickly, so any advantage may be brief.

Keep them short-term

Special offers work best as short, planned incentives. If a business runs them for too long, you may start to expect discounts all the time and refuse to pay the normal price. That can reduce brand value and make future full-price sales harder. A limited weekend offer can create urgency; a permanent discount can become the normal price in customers' minds.