Discounting strategies are performed to cut costs and stay competitive in most cases. Large players always purchase products in bulk and demands heavy price discounts from their suppliers. This will allow them an ability to offer the most effective discount pricing strategies and gain a complete advantage over competitors.
It is next to impossible to win over such retailers, however there are few areas that can help you to make the most from your discount strategies.
Below are effective discounting strategies that you can adopt to achieving goals, without putting your bottom line at risk.
– Act as a problem solver
There will be situations when you will receive calls from unhappy customers. Regardless to those issues, you need to provide an immediate solution to resolve it. Offering discounts or even refunds for such cases can help you overcome the ugly situation faced by your customer. Also, it can help you retain them, which becomes very important for the bottom line of your online business.
– To move old or perishable inventory
Depending on product line you deal with, I’m sure some of them are seasonal or perishable. Offering such products at higher price all time will increase the chances of stocking most of them for a long time, as no one is ready to buy those products for the price you have quoted. Consider offering a discounted price in order to move such products, which in turn will avoid loss of inventory costs as well as encourage your customers to purchase those products happily.
– To create brand awareness and loyalty
In case of a new product launch or expansion of your online business into new markets,you need to provide some kind of motivation to encourage customers engage with your brand. Discounts can be most engaging factor in such situations. Announcing attractive perks will attract more and more shoppers, while increasing brand awareness and loyal customers for your online business.
– Eliminate risk of heavy competition
Most of the online business owners try and avoid discounting, but at the same time it can create a large room for competitors. Such competitors lower prices to attract your market shares, this is when you should implement strategic discounts to ensure your existing customers remain with you.
The above examples show how discounting strategies can help you achieve specific goals in specific circumstances. Using them carefully, you’ll maintain your pricing consistently over time, encouraging customers to trust you for your quality and fair pricing.