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The Ugly Face of Discounts and How to Make Them Work For You
The Ugly Face of Discounts and How to Make Them Work For You
Time icon12 July 2018, 9:07 am

The question of how discounts affect a business is hugely debatable because some vendors feel deals are necessary while others think they hurt their brands. Both of these opinions have merit. Modern-day consumers have come to expect discounts for almost every purchase they make. A buyer can spend hours searching for deals rather than pay the full price for an item. It is why discounts are effective strategies for attracting customers and increasing sales. However, deals have to be structured properly to avoid affecting a company negatively. 

 

How Discounting is Bad for Business

When customers buy products from your store on discount, it becomes hard to expect them to pay more. You have already set a precedent, and it is hard to go back. Once you try to charge full price, consumers will start looking for alternatives where they get better deals. Discounts can reduce the value of a brand significantly by causing consumers to lose confidence. If the minute a prospective buyer logs into your e-commerce store you are already offering deals, it makes them question the confidence you have in your brand. If it is a quality product, why are you willing to slash the price even before a consumer asks for it? It is hard to lure customers, let alone retain them when they don't believe in your brand. 

 

Discounting Done Right 

The secret to leveraging the power of discounts as a marketing tool without undercutting the value of your business is learning how to do it correctly. Don't be too quick to offer discounts. Some vendors give away discounts for the sake of it; like slashing 10% off a service just to get a customer on the mailing list. Know when it is the right time to discount. Seasonal deals are always effective, and they condition customers on when to expect them. Organise a few promotions every year and know how to space them to build anticipation among your customers.

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