Around Black Friday your inbox is full and your feed is full of red percentages. Discounts work. But they cost margin, and they teach customers to wait for the next promotion. That is how you end up competing on price, a game smaller players rarely win.
Fortunately, there are other ways to stand out. In this article you will read how to add value instead of giving away price. You will also see how to make sure new customers come back after these weeks.
Why discounting costs more than you think
Margin is the part of your selling price that remains after your purchasing and other costs are deducted. Every euro of discount comes straight out of that part. So you need to sell a lot more to earn the same as on an ordinary day.
There are three more side effects:
- Customers learn to wait. Once someone has seen a good deal, they will only buy next time when there is another promotion.
- You attract bargain hunters. They buy for the discount, not for your brand. They often do not return without a new promotion.
- You lose your distinctiveness. When everyone uses the same red banner, nobody stands out any more.
That does not mean discounting is always a bad idea. It means you should choose it deliberately, and not out of habit or fear of missing out.
Give something extra instead of asking for less
A good alternative is to keep your price and add something. A free accessory, a longer warranty or free installation feels like real value to the customer. For you, the price stays intact.
It works best when the extra costs little to deliver but the customer genuinely appreciates it. Consider these options:
- A free accessory. A case with a phone, or a maintenance kit with a machine.
- A longer warranty. This builds trust and only costs you something if something actually breaks.
- Free installation or guidance. A short remote session is often enough.
- A bundle. You combine products that go well together into a single offer. A bundle is a set of products for one price.
- Faster delivery or gift wrapping. Useful when people are shopping for gifts.
Work out in advance what the extra costs you. A free extra that involves high purchasing or shipping costs eats into your margin just as hard as a discount. So choose something with high value for the customer and low cost for you.
Also make sure your extra is clearly visible. Put it in the subject line of your email, on your product page and in your ad. An extra that nobody sees does not help.
Explain why you are not taking part
Some brands do the opposite of the crowd. They openly state that they do not offer Black Friday discounts and communicate fair prices all year round. This can work very well, because you stand out in a busy period.
It only works if it fits your brand. A brand that has always been about quality, sustainability or craftsmanship is credible. A brand that runs frequent promotions the rest of the year is not.
If you are considering this route, you can start like this:
- Explain in plain language how your price is built up. What goes to materials, what to people, what to you?
- Show what you do offer. Think of good service, a long product life or an honest warranty.
- Be consistent. Do not hand out hidden discounts to others after Black Friday either.
- Still give customers a reason to buy now. For example, an order deadline to have gifts in time.
Keep the tone calm. You do not need to point a finger at others. The point is to show what you stand for.
What this can look like in practice
Suppose you have a webshop selling coffee machines, and you sell a machine for 300 euros. Every year it goes wrong in November. You offer a discount and sales rise, but afterwards it turns out your profit is barely higher. Many buyers do not return either.
This year you take a different approach. You keep the price and add a bundle with a maintenance kit and a bag of coffee beans. These extras cost you less than the discount you would otherwise give. In addition, you extend the warranty by a year for everyone who orders during the promotion week.
In your communication you explain that you would rather give a complete solution than a lower price. Your Google Ads and social ads mention the extra in the headline. Your email to existing customers does the same.
The result is that revenue may rise less sharply than with a discount promotion. But your margin stays healthy, and the customers who buy are choosing your offer. They are the group you can build on afterwards.
Prepare your follow-up
The new customers of these weeks are most valuable if they come back. A first purchase is only the beginning. The profit is often in the second and third order.
So set up two email flows now. A flow is a series of emails that is sent automatically after a certain action by the customer.
- Welcome flow. This starts after the first purchase. Thank the customer, show how to get the most out of the product and tell them who you are.
- Repeat purchase flow. This starts after a set period, for example when the product is almost used up or due for replacement. You remind the customer at the right moment.
Also make sure you can measure what it delivers. Do not look only at revenue during the promotion week. Look at these figures:
- How much margin do you keep per order?
- How many of your buyers are new customers?
- How many of them buy again within a few months?
This requires good tracking, in other words recording what visitors and customers do on your site. Check this before Black Friday, not after. Black Friday falls on 24 November this year, so you still have time to test your measurements and flows.
Frequently asked questions
Should I not offer any discount around Black Friday at all?
No, you do not have to avoid it. Discounts can work, for example to clear old stock. Just choose it deliberately and limit it to products or groups where it makes sense. You can also combine it with extra value.
Is it not too late to come up with something now?
You still have well over a week. Adding an extra, creating a bundle or setting up a welcome email can often be done quickly. Start small and make sure the basics are right, such as your tracking and your message.
How do I know whether my approach is working?
Look at more than revenue. Margin per order, the share of new customers and the number of repeat purchases say more about the health of your webshop. Compare these figures with an ordinary period and with last year.
Book a free 30-minute introductory call
Do you want to approach Black Friday differently, but are not sure where to begin? Then book a free 30-minute introductory call with Adventio Marketing in Amersfoort. Together we will look at your offer, your ads, your email flows and your tracking. You will get concrete ideas you can apply straight away, even if you then get started on your own.
