Anytime you tell a customer that he or she can save money, you’re most likely to get their attention. This is because no one likes spending a lot of money on commodities unless they are prosperous. Offering a discount is an excellent way of increasing sales, boosting profitability, saving money, and managing inventory. All these are ingredients that bring success to any business.
Below are the advantages of offering discounts.
Attracting new and regular customers
Most shoppers prefer to buy goods on sale due to the reduced price. This attracts more customers to your business. Remember to mention the specific days you offer discounts when advertising the discounted items. Customers are more likely to rush in, and window shop, or even shop if they know have a few says to do so. During this period, your shop is expected to experience high traffic, thus making new customers.
A discount sale is a way to attract new and regular customers by offering more for less. With increased customer traffic comes increased sales – not only on the discounted items. As most people will look around, others will find other valuable products that they find cute and buy. For instance, if a shoe company is offering a discount on kids’ shoes, parents who go buying the shoes might also buy shoes for themselves and other accessories such as shoe polish. This increases sales.
Boost your reputation
In business, the most important thing is building a name for yourself. For instance, a discount store Australia that offers discounts to specific groups of people, such as the elderly or women, may improve their reputation. When a business provides discounts, people who are having financial difficulties from lack of income sell its name by making an effort to help people of all financial strength. This is because many people view businesses as money-hungry enterprises, so offering discounts to help people improve customers’ perception of your company.
Managing excess stocks
The perspective that by producing more, you sell more can at times be misleading. You might end up having lots of items sitting in your store for months without selling any. Discounting these items enables you to free up some space in your store. For instance, offering discounts to customers whereby the prices are slightly lower if you buy in bulk is a great way to manage your excess stock. The sales will almost reach the purchasing cost, preventing the need to dispose of products or the products going bad in case they are perishable. This will also help shape customers’ perception of your company by offering quality products for less.
Cash discounts save money
Discounts may help the business save money if the discounts involve the mode of payment. Credit cards have transaction fees that may make you lose money in comparison to cash transactions. By offering a small discount on cash payments, you help both you and the customer.
Offering discounts is not only beneficial to the customer but also for the company. A discount store Australia will have increased sales, a better reputation, and reduced losses. Also, discounts are an excellent tool for offsetting expenses involved in acquiring the resources and ordering costs. Thus, proving very beneficial.