Percentage-off sales never build loyalty but can destroy price image. It is never wise to tell customers that there is a good time to buy and a bad time to buy. It is not good to refer to your normal everyday prices as the high price example. Comparison pricing should refer to competition, not your own store. The first 20% off sale feels good, but then you find yourself falling down a rabbit hole without an escape. Every repeat costs more and returns less.

It is interesting to compare the marketing strategies of Bed, Bath and Beyond in the U.S. with the failed marketing program at the now defunct Praktiker, once the largest home center chain in Germany. 20% off coupons were the backbone of both companies marketing programs.

Bed Bath and Beyond sales have cratered recently with a subsequent decline in the company’s market value. Management changes have been made and they are working to reset their merchandising program. However, customer loyalty is dependent on trust which is based on a value proposition. Trust lost is hard to restore. The fact is that in today’s digital world, the customers have perfect knowledge. The price must be right every day on every item.