various discounts or 1 simple price-which attracts more sales?

[julietmaria]

My partner and I cannot agree about the pricing structure for our new business. My partner likes the current arrangement, whereby we offer 10% off our stated prices for customers purchasing our products at our ‘sales events’, with a further 5% off for those spending over a certain amount. He thinks that a price structure gives most customers the feeling that they are getting 10% off, with the potential to increase this to 15% off if they spend enough, is good sales psychology. Whereas I think that the existence of the higher price might put off customers who do not wish to attend a sales event. Moreover, since we are shortly to make a push to develop an internet retail element to our business, we’ll need to give the internet customers our best prices, to be able to compete, which conflicts with the idea that our best prices are reserved for customers attending our sales events. I also think that our system of prices and discounts is too complicated for customers who just want to be able to see instantly the price they will pay and be able to compare prices with competitors more easily. We would really welcome some help with our dilemma. Whose view should prevail - or is there a compromise? Many thanks, Juliet

[barney1]

I think it is a little complicated. Always keep it simple and check what others in your field are up to thats normally a good way to gauge what works and what doesn't.