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Among various promotional tactics to win at the point of sale, special price promotions are undoubtedly one of the most direct and effective methods to stimulate consumers.

Special pricing, also known as price reduction sales, special offers, discount sales, profit-sharing promotions, or discount benefits, is one of the most frequently used promotional tools by merchants and one of the most important factors influencing consumer shopping decisions. Special pricing may seem simple, but some merchants benefit from it while others suffer. Today, special pricing has become a double-edged sword in marketing warfare—it can defeat the enemy but also harm oneself. Therefore, it is necessary to conduct in-depth analysis and research on the rules and techniques of special pricing. Based on past marketing experience, the author summarizes the key operational points into the following "Eight Steps," compiled into internal training materials for sales personnel's reference.

(1) Market Background and Timing for Special Price Promotions

In situations where product quality is highly homogeneous and brand images are similar, price reduction promotions are a killer move for companies to boost sales and compete for market share. The planning and implementation of price reduction promotions are often based on the following reasons:

  1. Price is the primary bottleneck hindering sales.
  2. Products are nearing their shelf life but have large inventories.
  3. Highly seasonal products face off-season periods.
  4. Manufacturers urgently need to recover capital.
  5. To counter competitors' promotional actions.
  6. Powerful manufacturers use price cuts to "reshuffle" the market and capture more market share.

(2) Main Forms of Special Price Promotions

  1. Direct price reduction.
  2. Indirect price reduction, including: A. Bundled offers. B. Bonus packs (increased quantity at same price).

(3) Side Effects of Special Price Promotions

  1. They cannot fundamentally solve sales problems. Discount promotions only achieve short-term sales growth. If timing is inappropriate, sales may increase while profits decline.
  2. Product prices are difficult to restore to original levels, especially in wholesale markets, which excel at low-price selling.
  3. They harm corporate profits.
  4. They can create false market prosperity, misleading correct marketing decisions. Over-purchasing by wholesalers and consumers can affect future sales.
  5. For new products, especially those with low brand awareness, discount promotions are almost useless.
  6. They can easily trigger price wars.

(4) Which Products Are Suitable for Special Price Promotion Strategies

  1. Products with high brand maturity.
  2. Products with high consumption volume and high purchase frequency.
  3. Highly seasonal products.
  4. Products nearing their shelf life.
  5. Products that are weak in technology, packaging, or product form.
  6. Products with high homogeneity.
  7. Products with unique features and high profit margins that have been on the market for a while but have not yet been recognized by customers and still need cultivation.

(5) Operational Techniques for Special Price Promotions

  1. Choose the right promotional timing.
  2. The activity duration should be 2 to 4 weeks. Consider consumers' normal purchase cycles; if too long, prices may be difficult to restore.
  3. The price reduction amount should be at least 15-20% of the selling price.
  4. Advertising for price reductions should be simple and accurate, avoiding flashy formats.

(6) Issues to Note in Special Price Promotions

  1. Price reductions must have a legitimate reason. Find a suitable excuse so customers do not think the product is unsellable or of poor quality. Common reasons include seasonal price cuts, major holiday discounts, anniversary celebrations (e.g., new store opening, first anniversary, 100 days since opening, sales reaching a certain amount), or special reasons (e.g., store relocation, change in business direction, lease expiration). Even when reducing prices, use positive terms like "discount price," "special offer," or "profit-sharing promotion."
  2. Leading price reductions require careful planning and strict confidentiality to achieve a surprise effect.
  3. Price reductions must win consumer trust. Stores with good reputations are trusted when they cut prices; those with poor reputations are not. Thus, the same promotion can yield vastly different results across different merchants.
  4. Based on past experience, price reductions below 10% yield almost no promotional effect. Reductions must be at least 15-20% to produce noticeable results. However, if reductions exceed 50%, sufficient reasons must be provided; otherwise, customers may suspect counterfeit or defective goods and avoid purchasing.
  5. A few products with significant price cuts in a store are more effective than many products with small discounts. Products with high brand awareness and market share benefit more from price reductions than those with low awareness and share.
  6. There are many ways to communicate price reduction information, but hanging discount tags directly on products is most effective in attracting immediate purchases. Customers can see the discount amount and the product at a glance, allowing quick decisions.
  7. On discount tags or ads, indicate both the original and new prices, or the discount amount and percentage. Ideally, hang both price tags on the product to prove the authenticity of the reduction.
  8. For durable or large items, consumer psychology sometimes follows "buy on rising, not falling." When prices drop, they wait for further reductions; when prices rise, they rush to buy, creating a buying frenzy. Merchants should seize this psychology to promote their products.
  9. Seek full support from retail outlets. Leverage the special price promotion to gain comprehensive store support, such as free placement in store flyers, free stacking support, free outdoor promotion space, free POP materials, permission to place promotional materials in prime locations, free store broadcast ads during the promotion, and restrictions on competing brands' promotions during the period. Also, have the store share part of the price reduction loss. Additionally, use special price items to promote the company's product line, such as requesting in-store demonstrations.

(7) Specific Implementation of Special Price Promotions

  1. Ensure promotional information reaches target customers effectively, especially with limited budgets, by focusing on in-store promotion. A. Display in prominent positions. Many supermarkets set up special price zones in the center of the hall, highly visible. Strive for the most conspicuous display positions and largest shelf space, and aim for stacking and end-cap displays so customers can see the special offers immediately. B. Conduct on-site promotion for special price items. Outside the store, use information boards, self-made display boards, banners, posters, and promotional display stands; inside, use broadcasts, product displays, in-store posters, sales guides, stacking, and megaphones to attract customers and convey promotional information. C. Utilize special price tags effectively. Tags should show both the original and current special prices for easy comparison, effectively highlighting the "special price." You can also add "special offer" to enhance price sensitivity. D. Use special price POP effectively. Avoid flashy formats. Special price POP must include "original price," "new price," "discount range," "brand packaging," and "valid dates." The most important thing is clarity—customers should immediately see the discount amount. Use strong colors for text or graphics that convey the type and price of special items, ensuring they stand out from the background. Keep the overall POP color scheme consistent, preferably no more than three colors. Complex, ornate phrases may be artistic but confuse customers and reduce appeal. Avoid too much text on POP; customers won't read it. Use language that resonates with customers. For example, "Buy now for only 80 yuan" is less impactful than "Save 10 yuan now," because the former asks customers to spend, while the latter emphasizes saving, creating a different psychological effect and better acceptance.

(8) Strategies to Counter Competitors' Special Price Promotions When facing competitors' aggressive special pricing, companies cannot sit idly by; they must respond quickly. Countermeasure 1: Launch attractive buy-and-gift promotions or limited-time ultra-low-price sales to fight back. Countermeasure 2: Offer a special price on a different product variant than the competitor's. Typically, special price promotions target a single item; against a competitor's aggressive pricing, choose another product with different functions for the special offer, thereby cleverly avoiding direct competition. Countermeasure 3: Designate a best-selling product as a "sniper" item, either fixed or following market trends. When competitors run special prices, launch this sniper product to counter their promotions.