Before we go any further, let's consider what makes these two shopping days the biggest of the year. Clearly the first conclusion we come to is the deals that consumers get - or at least think they get. Retailers employ a variety of tactics during this time and throughout the year to lure consumers into purchases. Consider this - during this time of the year, some big box stores (who will go unnamed) actually stock lower quality TVs that are naturally cheaper and put big retail prices on them with attractive discounts. This makes consumers feel all warm and fuzzy inside and as if they actually snagged a good deal. Chances are they did get a deal, but not as much as they think they did.
Am I condoning importing inferior products and putting large discounts on them to drive sales? Not necessarily, no. However, in such a competitive market as the one we compete in today, it's vital to your success that you learn to play into consumer's emotions and psyche.
For instance, one popular strategy I utilize on my sites, and thousands of other merchants do the same, is to inflate our normal retail pricing in order to offer a more attractive "discount" to customers. For example, let's say I typically sell product A for $59.99 throughout the year. During my holiday sales, I might bump that price up to $69.99 and offer a 25% discount. A 25% discount on the $59.99 product would leave the price at $44.99 versus $52.49 for a $69.99 regular price. To be completely honest, some of the industries I operate sites in could not afford to see 25% price drops without losing money because they are so competitive. With this strategy, product A still sells at a discount so the consumers do save money and the feeling they walk away with after that sale is much warmer and fuzzier than if they had received a measly 12% discount. The 25% also makes them much more likely to hit the "Complete Order" button.
All industries and niches are different and different strategies will work best depending on which niche you operate in. I am a firm believer in ensuring customers walk away with a deal during this time of the year because that's what the holiday shopping season is all about. However, at the end of the day, we all operate businesses and the goal of every business is to maximize profit. I hope you found this article useful and I wish you much success this holiday shopping season!