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Hosting Discussion > Operating a Web Hosting Business > Promotion and Marketing > Selling at a discount or buy one - get one free?
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  Post #1 (permalink)   05-20-2013, 11:19 AM
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In your experience, what works better? Discounting an item, let's say 50% to 50 cents OR selling for $1 and get one free?
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  Post #2 (permalink)   05-20-2013, 03:07 PM
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I've never tried a "buy one get one" with web hosting per say. It's hard to say which would attract more buyers. Ask yourself what you'd be more inclined to purchase.
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  Post #3 (permalink)   05-20-2013, 07:23 PM
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As a customer, 50% would go a long way with me, just because I rarely need 2 of something, but a 50% discount would always come in handy.
 
 
 


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  Post #4 (permalink)   05-20-2013, 07:54 PM
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Quote:
Originally Posted by SenseiSteve View Post
In your experience, what works better? Discounting an item, let's say 50% to 50 cents OR selling for $1 and get one free?
I depends on what you are selling. If it was your 25 GB hosting plan with everything else unlimited why get two? I'd rather see discount
 
 
 


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  Post #5 (permalink)   05-20-2013, 08:28 PM
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We've found that flat dollar discounts often outperform percentages or buy-one-get-one promotions.

$50 off a dedicated server that sells for $100 vs 50% off. We generally label discounts something like '$50 to get you started'.

Please let me know what you find. We are always looking for new marketing ideas.
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  Post #6 (permalink)   05-21-2013, 02:17 AM
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The best way is to try both, one month or for x weeks do one and then next do the other - see the returns you get, compare and see what works best.
 
 
 


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  Post #7 (permalink)   05-21-2013, 06:25 AM
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The 50% off worked for me last week.

Due to issues with my previous backup service provider i was looking for a new server for backup purposed only.

After a couple days searching i found one with a 250GB KVM for $10 with a 50$ recurring discount bringing this to $5 a month, this gave SSH etc, so was able to work with cpremote from my main servers. If i purchased more that 1 at diff locations they could mirror these, well at $5 i purchased 2, so i would backup to 1 through cpremote and this would mirror to the other, which is an ideal situation as having backups in 2 diff locations
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  Post #8 (permalink)   05-21-2013, 08:28 AM
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I would go with 50% off. It might be hard to offer 2 for price of 1 in web hosting. Customers don't often buy 2 domains, websites, dedicated servers etc. You will gain or lose the same price so you should go with the easiest one, 50% off.

If you try to make your customers buy 2 things at the same time they might think you are trying to bait them into a long term contract and make them pay for multiple products after the discount period has ended.
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  Post #9 (permalink)   05-21-2013, 02:05 PM
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I would say a big discount would attract someone more.
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  Post #10 (permalink)   05-21-2013, 05:36 PM
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I'd say we've seen much more volume/success from "Selling at a discount". But that a side, we have done free server deals on colocation packages and that actually has been fairly popular with our 1/4 racks.
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  Post #11 (permalink)   05-22-2013, 03:10 AM
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The customers will be more happy to get one if the do get a discount instead of "one extra".

I've also seen in some cases a minor price increase and then the supplier added a discount.

This would mean that the provider can sell the product with a high discount (in percent) but still make more money.

The customer will still be happy to get a 50% discount, no matter the original price.

It's strange how the human mind works sometimes.
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  Post #12 (permalink)   05-22-2013, 04:00 AM
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Quote:
Originally Posted by mikho View Post

It's strange how the human mind works sometimes.
True, their is nothing more queer that a human beings mind
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  Post #13 (permalink)   05-22-2013, 07:07 AM
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I believe the 50% discount version works best because its very rare that a customer will want two of what we sell (servers, hosting plans).

But if you look at the grocery store isle you will see the discount in terms of a twofer even though you are still allowed to buy one at half the given price for the twofer. The discount itself is usually under 50% per item, but customer is lead to believe they must buy two of the items to get any discount.
 
 
 


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  Post #14 (permalink)   05-22-2013, 07:15 AM
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yes i just did our main shop yesterday as Asda (walmart brand) in the UK.

Jar pickled onions 1.98 or 2 for 2, but 2 months ago they had the same jars on sale at 1 a jar
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  Post #15 (permalink)   05-22-2013, 07:32 AM
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Over here what is common (in grocery stores) is a $2 item will go on sale for $1.50 but the sign and/or shelf tag will say 2/$3.00 (along with regular tag of 1 for $2.00). But you are allowed to buy one for $1.50. A lot of people will buy 2 instead of 1 even though they would have just bought one if sign just said SALE $1.50.
 
 
 
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