Stop Discounting
Author: Lockshin, Larry
Abstract: Champagne Bolliinger now refuses to allow extreme forms of discounting on their wine. The following article, outlines the reasons why this is a wise decision. It also explains why Australian wineries should follow the lead of Champagne Bollinger in order to achieve long-term sustainability. Research shows that discounting results in a sales increase, but these increases are rarely larger than the sales discount. Discounting can cause cannibalisation and can also reduce the number of sales when the sale is not on, as people stock up. Therefore, it is more important for high-priced Australian wineries to focus on building their reputation in export markets, where there is a greater number of consumer purchasing high-priced wines
Publication: WBM. Australia’s Wine Business Magazine, March 2015, pp. 58-59
