Should You or Should You Not Offer Discounts?

Should You or Should You Not Offer Discounts?

Monday, April 8th, 2013

Price Discounting has often resulted in becoming an efficient and an effective tool for your business. Your strategy is the King here and has the power to create goodwill or misunderstandings in the minds of your customers. Trying it out on a regular basis is not a bad idea at all but the way you carry it out and monitor it determines the results that you expect.

However, it also depends upon a lot of factors, for example the developmental stage of your company, the number of Clients, the Pricing Strategy, your Customer Relationship Management, etc. Let us have a look at how effective can you make your discount to be:

1)      A new Market:
Launching oneself in the new market can be utilized by seeking out the target audiences for your products and services. Here, lowering price is the key to acquire trust and create a Brand Name for yourself.

2)      Seasonal Sales:
Discounting your price on the seasonal products automatically increases the sales irrespective of the product’s utility at that particular point. Customers generally tend to look beyond and know what he might need later. If offered a discount, he’ll definitely go for it. Moreover, it is also not safe to keep it with yourself due to the ever changing trends in the industry.

3)    Stand Out:
Maybe it’s time for you to increase your volume and sales. The best way to go about it is to ask for discounts from your own suppliers. This way you can go ahead with offering discounts to your customers, making it look like a kind of bonus to them and due to the high rise in the volume and sales, the company profile also looks attractive.

4)    Cut-Throat Competition:
An aggressive competition requires a lot of effort on the seller’s end. This is the key to survive. If your competitor has reduced its prices, you have to meet the expectations and demands of your customers too. You can do it simply by reducing the price too.

5)     Break-even Point of the Customers:
This is the way to strike the right chord of your customer by giving him a reason to shop what he needs as well as giving him a reason to shop more than he actually planned to. Th process is simple : Offer Discount.

6)     Atithi Devo Bhava:
It simply means, treat your guests like your God. Don’t you want your God to have a taste of your Discounted Pricing Strategy? I’m sure you would. Place a special section of your advertisements in the tourist guides, newspapers and various other famous magazines. They are sure to come have a look and get some souvenirs for their loved ones too.

We just went through when and how does discounting serves your purpose. We just need to keep in mind that discounting is productive but only sometime, under meaningful situations. Your discounted price should never take the place of your regular price otherwise you may incur losses.

Good luck!

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