First, we need to understand exactly what a discount means, discount is a reduction made from a regular or list price that is offered to a consumer while purchasing a product. These are nowadays used almost in every sector. Many brands use this strategy to attract more consumers. These discounts are given only for a particular time period, they are not given all the time. But is it good to give a discount for more sales?
here are some points to check out:
1. Being doubtful:
When you’re offering a reduction on your product, what’s that saying to your consumer?
It’s saying that you don’t believe enough in what you’re dealing with that you suppose you can vend it for the standard price. As soon as you offer a reduction, your consumer incontinently loses confidence in you and sees that you don’t stand behind what you’re trying, wholeheartedly, to vend to them. confidence is an important factor, so if we lose it or are doubtful, we will mostly lose the sale.
2. Decreased value:
The majority of people give value to anything considering its price and brand also known as brand value. So while selling any product it’s the duty of the salesperson to demonstrate and gain the consumer’s trust that the particular product has value and is worth purchasing. but when we introduce the product with a discount that value is no longer there. Even if the product is sold it won’t have the value before the discount.
3. Losing trust:
At first, during any sale, the salesperson won’t reveal the final price of the product to the consumer thinking, that the consumer will ask for more discounts on that deal. So keeping that in mind he will tell the consumer that this is the standard price package and this is the best I can do for you. But when the consumer extends the conversation, the salesperson will most likely think that he will lose that particular sale, so he immediately offers some discount to get that sale, but what he won’t think about is the questions that should never be there in the first place like consumers might think, the salesperson first said this is the best he can do and now he is offering a discount.
Consumer’s trust in the salesperson starts decreasing and they think about whether he is honest or not even if the salesperson gets the sale those questions in consumer’s mindset can lead to mistrust in future purchases.
4. Managing profits and discounts:
When we offer our consumers a reduction, we are going to have to vend a whole lot more in order to meet your yearly proportions. While this might not inescapably affect our current trade, suppose what it means for your workload, which in turn affects your capability to vend effectively. You are going to be stressed, rushed, and veritably driven to just move onto the coming trade.
However, also we are going to have a much harder time closing that trade, making us indeed more stressed-out and rushed If we are not spending the proper quantum of time with each of our consumers. It’s the no-way-ending cycle, that all leads back to that veritably first lower price or discount.
5. Price dominates value:
Whenever a sale happens the ending conversation is always targeted towards the price. When we offer a discount then neither the consumer nor we will have the time to talk about other crucial aspects like consumer’s needs or consumer’s business challenges and how our company offers ideal solutions which make their lives easy over a long period of time, it will be hard to sell any product based on its price than on its value.
By offering the same product at a reduction, our consumers may not suppose our product is worth its original price. Our deals brigades just want to close. They may be using abatements as the path of least resistance to close a trade, dwindling the culture of profit you want to center your company on. When offered an aggressive discount without having the proper continuous strategies, businesses are experiencing high turnover rates and loss in revenue. But here are also some exceptional cases where we can offer some partial discounts like mentioned below.
Example:
⦁Being distinct:
We shouldn’t tell everyone that we are offering a discount on the product, as it may affect the consumers who are paying the total price making them think it’s undervalued.
⦁ Partial discounts:
Only the targeted audience should be given discounts like the people who need an extra to get the sale. The discount should not be offered to those who are willing to pay the total price as we might miss that opportunity.
⦁ Unexpected deals:
If the offers we make are predictable and obvious, then the customers will expect them and wait for the discount to start. So the discount deals should be unexpected. like amazon sales are expected so consumers wait for the sale to start.
⦁ Build trust and initial confidence:
When we keep a discount it only lowers the starting decision power to purchase, rather than that we should make them convinced that the product is worth its original price. When we offer discounts for a limited time or a certain time the consumers will think of buying the product immediately this way we can gain more sales.
Can we have sales without discounts?
Yes, we can have sales without considering discounts or coupons but we need to have some other strategies. As we should focus on the unique selling points of the products or the particular brand. We should attract consumers who understand the value of quality rather than the price. People who are loyal to a specific brand will expect higher prices even if a competitive product has less cost in order to gather such kind of brand value and that kind of sales, we should include the quality of the materials used in the product.
The long-term value of the product, because the products which last for longer periods of time can have more price points. The aftermarket sales and consumers support. Consumers will buy at higher prices if they trust our brand and the statements we give about our products. And they will believe we will quickly sort any problem related to our product. This can boost sales in an organic way rather than by keeping discounts. Another small and important factors are lower shipping costs which can make the consumers’ purchase products globally at lower shipping costs. Limited edition products and also by keeping customers reviews in mind if brands make the products price according to it then obviously it can have more sales than discounting the product or special offers.
MadOverBranding has worked in over 10+ countries all over the world and knows exactly how to keep pace with the changing world of branding.
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