You get that chirpy smile on your face as soon as you see that glossy, nicely decorated sign on the front door of your favourite department store saying, ‘SALE’ or ‘50% OFF’. Isn’t it? But deep down somewhere even you know that the whole idea is to make a fool of you, by marking up the prices and then selling them at a discounted rate. There is a good possibility that you too do the same thing to your customers. But still you get attracted to the idea of discounts? Blame it on the damned ‘human nature’!
Discounts are not illegal, they are just a tactic (a rather successful one) which is being used by business houses, no matter how big or small they are. Consultants usually advise you to stay away from offering discounts, but you don’t need to pay attention to everything they have to say.
- Why You Should Offer Discounts – People assume that if they’ll offer a discount their customers will think the business is not making enough money or that the quality of their products has gone downhill. But that’s not true. Do you feel the same when you get a discount at Adidas, Zara or Big-W? There is nothing wrong in offering discounts if you’ve planned them well and offer for a limited amount of time.
- Discounts are Important in Many Scenarios – Running a business is all about negotiations. From the fish-hawkers in Istanbul to the traders who work in the suave offices of CBD (Central Business District, Sydney), every successful businessman knows how and what to offer in order to catch the next fish. If the potential client is too big to be neglected or in a situation when you can’t afford to throw a little attitude, you simply lower your prices. As long as the profits are coming in, it won’t hurt!
- A-Hole Tax – Yes, it is what you think it is! We all have our share of jerky customers. These selected A-holes should be charged extra for being the way they are and the good news is, you can actually do that. Many people charge a selected bunch of their customers a little extra or simply deny them of any discounts. Try doing that, if nothing else, it’s a psychological boost!
- Discount Periodically – Your shop shouldn’t be one of those places where a ‘40% off’ sign is permanently glued to the front door, all year round. Your customers will figure out that it’s not 40% off that you are offering, you are actually telling them that the prices are 40% hiked.