Nike got sued...


I’m eating breakfast while listening to the Ecomm Cowboy podcast.

It’s a podcast where they talk about what’s happening in DTC, marketing, and ecommerce.

Today they discussed how Nike and Lululemon got sued for phantom discounting.

​
Basically…

They were selling products at their normal price while making them look discounted.

A lot of ecommerce founders love doing this.

Personally…

I think that’s a fat lie.

And money made by lying isn’t good.

Sooner or later your customers figure it out.

Once trust is gone…

So are your customers.

Not only that... but a lot of ecomm brands rely heavily into discounts and sale campaigns because they think thats the only way out of selling their products..
​
But if every campaign is a “FLASH SALE”…

Not only will you hurt your margins…

You’ll train your customers to wait for the next discount.

And that’s a dangerous game.

You know what makes a good brand?

Being able to sell your products at full price.

Then when you do run a discount…

It feels like Eid.

So how do you sell at full price without constantly discounting?

If your strategy is just showing product features…

How premium your brand looks…

Or how unique your products are…

Then slapping a fat discount on them…

You’re shooting yourself in the foot.

Your customers don’t care how cool your features are.

They care what those features do for them. The benefit of those feature.

So here’s the answer:

  1. Market your product by showing people how their life gets better after using it. How it will benefit them.​
    ​
  2. Build a relationship with your audience so they feel part of your brand, your family, your mission.

You do that by showing up in their inbox every day with something valuable.

In the first case, you educate people about your product and shift their beliefs so they trust yours is the solution.

In the second, you show up with something engaging, fun, or relational that leaves them better off after hearing from you.

That way they will always look for you in their inboxes with enthusiasm, buy your products, and talk about you to their friends of how good your products are and how inspiring your brand is...

That’s how people stick with your brand.

That’s how they buy regardless of price.

But if your only goal is to squeeze as much money as possible today…

Go ahead.

Do what Nike did.

Blast discounts every other email.

Just don’t tell me I didn’t warn you.

Thank you for reading.

Elton

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