Do customers really need discounts?

[jisansorkar12]

"Black Friday", seasonal sales, "Cyber ​​Monday" - discounts are everywhere today. In theory, they attract customers and increase sales. In practice - not always. We tell you how to use discounts to your company's advantage and whether you can do without them. The article will be useful for those who want to attract more customers through discounts without losing their reputation and profits.

The coronavirus pandemic that began in 2020 has had a serious impact on people's uruguay whatsapp list lives, including changing their attitude to money. People's incomes have decreased. According to a study by EY in the spring and summer of 2020, people began to save more: they looked for discounts and thought through their purchases more carefully. Food and essential goods, including household and pet products, naturally became a priority.

Faced with declining sales, clothing and footwear manufacturers and retailers have been forced to adapt to new types of consumer behavior. The same applies to the service sector. Many entrepreneurs have moved their operations online, started selling online, and added delivery and home visit services. To stimulate demand, they have increasingly resorted to discounts.

Do customers really need discounts? 1

The discounts are clear and easy to apply. But only at first glance. In reality, for this tool to work properly, a number of important issues need to be addressed:

determine whether it is worth giving out discounts at all;
the cost of which product or service can realistically be reduced without harm to the company and the client;
how to take into account a lower cost so as not to have problems with the tax authorities.
What to do if you are not ready or do not want to give discounts to anyone? There are several strategies that will help you steer the conversation away from the discount without scaring off potential customers.

Which discounts work best?
Discounts used in wholesale and retail trade to stimulate sales and increase profits are called logistics. They are most often aimed at individuals. If you have been working in sales for a long time, then you are familiar with many discounts. We have prepared a table where you will find the main types of logistics discounts, learn in which areas they are used and how they work.

In this article, we will name the discounts that have every chance of becoming the most profitable for sellers and attractive for buyers in 2021.

Discount for prepayment

Provided if the client pays before receiving the goods, or pays for the company's services in advance for a certain period. Pre-order allows the seller to buy goods with the client's money, pre-payment - to receive a large sum at once. In the first case, the seller does without loans and credits, which is very important with a shortage of working capital. In the second - receives a guarantee of long-term cooperation.

Discount with personalization

It is defined for individual clients and can also be provided by a promo code or code word. It forms relationships with clients, increases their loyalty, making them feel special. In a situation where many are stressed, worrying about work, relatives and their income, positive emotions together with the opportunity to save money are a great help.

Discount for cash payment

If profits are falling, the company naturally switches to savings mode. At first glance, this contradicts the idea of ​​discounts. But they can be given if the company has a large turnover. Giving a discount to customers who bring cash is often more profitable than paying a bank commission for acquiring.

[yadaysrdone]

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