Why So Late Discounting?
We are usually pretty certain about what's the right thing to do as we are a pretty ethical bunch, but discounts was strangely a big flash point in our office.
It was agreed that in order to encourage people to switch their packaging to green earth positive packaging , we were going to have to price our products as low as we could go and still make a profit, this seemed to be the best way of encouraging people to make the change to Purely Ethical packaging.
It worked but only partially, as it meant that everyone paid the same price , which was great for our customers who purchased little and often , this was no so great for our bulk ordering customers.
This led to us being asked (quite often) "what's the encouragement for me buying in bulk", so we realised that the one size fit all approach to selling was not working for our Customers or even for The Pure Option.
So we were faced with a dilemma, most of our customers ordered only just enough to get free delivery.
Which meant we were sending a lot of smaller quantity orders that was increasing our delivery costs and greatly increasing our carbon footprint (something a business based around ethical business practices like us was never comfortable with and the extra cost of carriage actually pushed us into a loss.
So only our little and often customers were happy, but not our owners, our environmental audit team and our larger customers, so change was needed and inevitable, but the big question was how to keep everyone happy and still remain in business.
So what did we do?
We did away with free delivery and created a minimum order of £200 for free delivery.
It's reduced transportation Co2 by 8.4kg per delivery ( the equivalent of two days of a tree's carbon intake).
It reduced costs per order by an average of 8% which we could use for discounts which increased our orders and transaction values, , so no one lost out and this simple change allowed us to provide discounts , increases sales and reduce our carbon footprint.
This has allowed us to reduce our Co2 output by 50% , save 8% on delivery charges per order which allowed us to offer a discount, increase transactions and be able to use the carriage savings as a discount.
So why was it such an office flash point ?