Discounting & slashing prices is common place in retail, and seems even more prominent in sports merchandise. From a retailers perspective the objectives of slashing prices is simple…to increase sales & reduce stock!
Used occasionally, slashing prices, can work as a marketing tool. However there are consequences of reduced profit margins & also long term reduction in brand value. We wanted to calculate what the former was costing the sports merchandise industry each year.
Using online public data, together with a few interviews with sports merchandise industry leaders we compiled data across all major US sports, as well as the UK football teams. The result was staggering, over £100m in potential revenue is lost per year due to price slashing.
To find out how we calculated this and what we think the sports merchandise industry should do about it, read more here: https://blog.discountif.com/sports-merchandise-price-slashing-costs-the-industry-over-100m-b959acfdc47c