If i give discount or beat my price low, will it make my business cheap?
To discount or not to discount? This is a timeless question for businesses of all sizes. On one hand, discounts can
push product. Sales can create a sense of urgency. On the other hand, discounts limit profits. You could undermine your margins if you’re discounting too much or too often.
The answer isn’t black and white. Let’s take a closer look at discounting.
Discounting makes you more competitive
How many other companies in your area sell what you sell? Most people don’t make purchasing choices based on price alone, but price is relevant for everyone.
Offering a discount makes you more competitive, even if that advantage is temporary.
Discounting creates a sense of urgency
Customers that are unsure about buying something may have more of a reason to pull out their wallets when you offer a limited-time discount.
By lowering the price, you encourage the sale. When you limit how long the low price is offered,
people feel compelled to act now or miss out.
It draws people into your store
Everyone loves a good deal. Offering a discount is a great way to attract attention from new potential customers,
which can boost the sales of items that are not on sale.
Also, have It in mind that cheapens your products and brand
Customers often associate price with quality. If a product is inexpensive or steeply discounted, it can signal that it
is low quality. The more discounts you offer, the more customers will associate your brand with lower quality,
even if that’s not the reality.
It teaches customers to wait for a sale.
If you discount often, customers can come to expect discounts from your business. Often, they’ll wait to make
a purchase from you until you’re offering a promotion. Although you could push a lot of product in a short
period of time, the effects of your sale can be short lived.
Margins might go up after a sale, but revenue often