Unlocking the Power of Discounts for Apparel Preorders

 

 

Discounts!

Cue the gasp!

"I won’t discount anything because I’ve read and heard that discounts are bad!"

Relax. Discounts can be a powerful tool when used strategically. The issue isn’t with discounts themselves—it’s with how they’re applied. Many businesses end up discounting the wrong number. Let’s break that down.

The Power of Price Savings

One of the strongest motivators for getting customers to act on a preorder is the opportunity to save money. Preorders remain the most effective way to manage merchandise orders, but some clients struggle to get participation.

If you've tried everything—samples, aggressive marketing, shortening the preorder window, or reducing product options—and still aren't seeing results, it might be time to try offering a discount. But there’s an important concept most gym owners miss: they discount the wrong number.

Discount the Right Number

Let’s look at a common scenario. Say you typically sell apparel for $27. To boost preorder sign-ups, you decide to discount the shirt price to $22. That sounds reasonable, right? Unfortunately, this is a classic case of discounting the wrong number.

You shouldn’t be discounting your ideal price point. Instead, you should set a higher price point and then discount from there.

How This Works

Here’s a better strategy:

Example: “Our new tees and tanks are available for preorder at $27.99. I will be ordering some inventory for these, but if you wait to buy from that inventory, the price will be $35 per item. Preorder now to lock in the discount!”

In this case, you’re discounting from a higher price ($35) to your ideal price point ($27.99). Before you dismiss this by saying, "No one charges $35 for a t-shirt," take a look at Mayhem’s store—every shirt is $35!

Raising your price may seem risky, but with a little courage, you’ll find that discounting from a higher point can drive action without devaluing your products.

When and How to Use Discounts

How to:
Set a price point that’s $5-8 higher than your ideal selling price. For example, if you want to sell a shirt for $27, list the full price as $32 and offer the preorder at $27.

When to:
Use this strategy if your preorders are lagging. Offering a preorder discount from a higher price point stimulates demand without compromising the perceived value of your merchandise.

Final Thoughts

Discounting, when done right, can be a game-changer for your apparel sales. By setting a higher price and offering a discount for preorders, you encourage customers to act while still maintaining the value of your products. Give this approach a try, and watch how it can transform your preorder participation!