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5108 Posts
Posted Today  1 Hr 10 Min ago  Show Profile Bookmark this reply Add Partime to your friends list  Get a Link to this Reply
Makes perfect sense to me, as long as the 25% incentive results in at least 25% more buyers due to that incentive. Anything less than 25% new buyers is a loss, and anything more is a gain.

I guess the long term effect could be that buyers now know that an incentive will be offered in the last quarter and will hold back their purchases until that quarter, resulting in a net loss overall. It's kind of like watching my spouse wait until that one special day at Kohl's when the prices dramatically drop, you get double coupons, and lots of other incentives. Any other day we shop there, she says, "Nobody pays those normal prices. They always wait until the sale days."
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12771 Posts
Posted Today  59 Min ago  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply

Quote:
I guess the long term effect could be that buyers now know that an incentive will be offered in the last quarter and will hold back their purchases until that quarter, resulting in a net loss overall. It's kind of like watching my spouse wait until that one special day at Kohl's when the prices dramatically drop, you get double coupons, and lots of other incentives. Any other day we shop there, she says, "Nobody pays those normal prices. They always wait until the sale days."


Exactly this.
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