Why would a business selling fur coats want to limit the discount on them during a promotion?
• If prices are too low, customers will question the quality.
• A discount suggests that the product is defective and unsellable.
• No one who buys luxury goods will participate in a promotion.
• Few customers will buy more than one, so a discount is irrelevant.
• The business may want to maintain the exclusivity and perceived value of their fur coats by not devaluing them with excessive discounts.
• Offering limited discounts can help protect the brand's image and maintain a premium positioning in the market.
• By limiting discounts, the business can also ensure that they are still able to generate a healthy profit margin on each sale.
• Additionally, a limited discount can create a sense of urgency and exclusivity, enticing customers to make a purchase before the promotion ends.