When you start a business or start a new [business marketing] campaign, it is important to consider your pricing, your profit margin, and what kind of consumer discounts you are going to offer. Consumer discounts are very important because they entice people to come to your business, entice them to get more service from your business, and make your business money. These three reasons alone are sufficient enough to explain why you should consider using discounts with your business, regardless of the product or service you are providing.
Consumer Discounts Entice
If you have never tried something before, but you have thought about trying it, you are probably more apt to try it if you don’t have to pay full price. If you have tried something and love it, but don’t like how much it costs, you are more apt to purchase it if a discount is offered. They entice people to come to your place of business and purchase products or services.
Consumer Discounts Prompt More Spending
When people are saving money on something or a combination of things, instead of actually saving the money, they generally spend their would be savings on other products or services, simply because they planned on coming in to spend a certain amount of money. This helps put money back into the business because it is almost as though no discount or special promotion was offered.
Consumers Discounts Make Your Business Money
Though it seems backwards to say that offering discounts makes your business money because you are reducing the amount of money a customer is paying for a product or service, it really can make your business money. Usually, discounts don’t cut into the profit margin, but even if they were to do that, the sheer volume of people coming into the store or place of business helps to counteract the loss of money on the discounts, and can even push earnings higher than they were when there was no discount or promotion offered.
With these three reasons as to why consumer discounts are important to the success of the business, there is great incentive for you and your business to use discounts with your marketing strategies. You will have to look at your business, what you offer, and what your target demographic enjoys to determine the best kinds of discounts and promotions to run, and how often to run them.
It may take running several different promotions to figure out what the consumers respond to best, but there is nothing wrong with running several different ones over the course of a few months to see what works. Your suppliers and vendors may even run specials and provide consumer discounts for you to pass on to your customers.