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 make the right choices we were going to have to price our products as low and still make a profit so we started with no discounts, just very low prices.
It worked but only partially, as it meant that everyone paid the same price , which was great for our customers who weren't big enough to order in bulk but this discouraged large customers and gave no incentive to order in bulk.
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 as we just couldn't make a profit.
So we were faced with a dilemma, most of our customers ordered only just enough and ordered little and often.
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 practises like us was never comfortable with and the extra cost of carriage actually pushed us into a loss.
So the customers who ordered little and often 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.
Which had the following benefits.
It's reduced transportation Co2 by 8.4kg per delivery, a tree would take 140 days to absorb this much carbon.
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, make a profit and greatly reduce our environmental impact.
So why was it such an office flash point ?