No open stores? No worries. JB Hi-Fi has smashed the last 12 months despite nation-wide lockdowns.
JB Hi-Fi - aka everyone’s fave electronics retailer - is worth a huge $5.48 billion, and they’ve been consistently out-performing an otherwise weak retail market.
This financial year was no different. JB Hi-Fi saw net profits rise 67% to a huge $506.1 million. And it’s because high demand for their products allowed them to stop discounting so much.
Literally EVERYTHING worked in their favour. Working from home? Head to JB Hi-Fi for a home office. Lockdowns? Head to JB Hi-Fi for a new Xbox. Got inspo for a DIY? Head to The Good Guys (also part of JB Hi-Fi) for new appliances.
Discounting can attract a whole new customer base (yep, 57% of Aussies said they’d buy from a new brand if they’re offered a discount), and it can be great for a short-term sales hit.
Buuut there can be too much of a good thing. Aka too much choccie = sick. Too much discounting = expectations of further discounting, tight profit margins, business complications…
But if you have high demand for your products, people will buy your products regardless of the price. Higher prices = better profits. Kudos to JB
Sign up for Flux and join 100,000 members of the Flux family
