Askona, a leading European sleep product manufacturer with $1B in annual turnover, sought to improve margins without sacrificing sales volume. By implementing a "Negotiated Discount" model across three pilot stores, Askona successfully increased the Average Selling Price (ASP) of core products by over 10% despite a significant initial price hike.
Operating under the international brand Sleep8, Askona faced a common retail dilemma: how to increase profitability in a competitive market where customers are conditioned to expect discounts. The goal was to find a pricing strategy that protected margins while still providing the "thrill" of a deal that modern shoppers crave.
In collaboration with BATNA, Askona launched a pilot project in three flagship locations (400–600 sqm) involving 35 trained staff members.
The Implementation:
"By shifting from a static discount to a dynamic negotiation, we transformed the price increase into an opportunity for engagement."
The pilot proved that customers are willing to pay more when they feel they have actively participated in the pricing process. The negotiation-based model allowed Askona to capture a higher final price point than traditional fixed-pricing or standard discounting ever achieved.
The Askona pilot demonstrates that traditional fixed-pricing models often leave significant money on the table. By shifting the sales dynamic from a passive discount to an active negotiation, Askona didn't just sell products; they sold a value-driven experience.
The results speak for themselves: a double-digit increase in average selling prices across both core furniture and high-turnover accessories. This project proves that with the right psychological "anchoring" and staff empowerment, a retailer can successfully raise prices and grow margins while maintaining the customer satisfaction necessary for a billion-dollar brand. As Askona continues to expand its Sleep8 footprint across Europe, this negotiation-based strategy serves as a powerful blueprint for the future of high-margin retail.
