why do renewing members get a raw deal?

deprived wrote:

valhalla360 wrote:


I'm confused what is immoral or unfair about offering new customers a discount to get them to try your business?

Since I never said it was unfair to offer something to new customers, I can't answer that.

My point, if it doesn't confuse you too much, is that loyal, repeat customers should be treated as well as new customers.

You certainly implied it was immoral or unfair, sorry if explaining basic marketing comes across condescending to someone who operates multiple businesses. ;)

If you want to offer a loyalty/repeat customer discount, have at it. Just a different marketing approach. Assuming you actually achieve high levels of loyalty, it quickly becomes a situation where it either becomes
- The standard price and most customers pay the discounted price killing your profits (assuming you don't create fake high prices that you never charge so you can offer a discount while still remaining profitable).
- Or you effectively charge new customers higher prices which doesn't seem to smart if you are trying to increase your customer base. Why would a customer leave a current provider to pay a jacked up price to you in the hopes that if they stick with you, you might one day lower your price?

Some companies discount everything until the base prices mean nothing.

Actual discounts should be targeted to accomplish something that in the long term results in increased profits. Discounting new customers gets them in the door and hopefully turns them into repeat customers willing to pay the regular price because you provide a good product/service. Unless existing customers are threatening to leave, there is little reason to offer discounts.

Morality & fairness have nothing to do with it.