There is a lot of skepticism about offering products at a discount. But this business strategy as a short term and occasional tactic to boost sales can do more good than harm to small businesses.
Customers are inherently drawn towards items on sale. Given two products that are practically similar in terms of features, consumers would almost always choose the item that costs less.
For your discount promotion to work, make sure to advertise this via online social media and a few traditional marketing efforts such as flyers and direct mailers. These are low cost yet very effective means that you can utilize to reach your target market. In-store materials such as posters and signs displaying promos and discounts are proven to be very helpful as well. There are several commercial printers that offer poster printing services at very affordable rates. PrintPlace.com and VistaPrint are two such reliable online commercial printers. It is very important that your marketing materials are made of high-quality prints as visuals play a big role in enticing shoppers to go into your store and actually go through your products.
Here are the many reasons why small business owners should not be afraid of offering discounts:
- Increased Traffic Offering discounts for a limited time will attract customers into your store and most likely draw them into buying these items right away. Make sure to advertise your sale clearly, emphasizing the discount rates you will be offering and the specific period that your items will be on sale. Also anticipate the increased traffic and schedule more staff in your store during the discount period and ensure great customer service.
- Increased Sales Increased traffic usually comes with increased sales. Drawing customers inside your store and influencing them to buy is not only confined to items on sale but also to regular-priced items. Shoppers are likely to walk around your store and see other items that may not be discounted but are willing to buy those because they have already saved on other items on sale.
- Sales Targets Are Met Most businesses have weekly, monthly, quarterly, and yearly sales targets. Given the seasonal fluctuations in consumer buying behavior, you can curb lean seasons by offering discounts. This way, you are able to meet your goals within every period regardless of your forecasts show.
- Stronger Client Relationships Giving your customers great value for good quality products can greatly improve their loyalty to your store. This is especially true for first time buyers who were influenced to try your products because of your sale offer. Once consumers have tested your products, this can lead to repeat business and also generate positive word of mouth.
- Monetized Inventory Discounting items allows you to dispose of old inventory and even items that you don’t plan on selling anymore. Place these items in front of your store to make them more visible to your customers and offer them at a bigger discount. Providing a short term incentive to your customers will not hurt your bottom line. In fact, these occasional discounts can help strengthen your customer loyalty and widen your market.
As long as you offer high quality products and provide great customer service, you can be assured that your business will go a long way.
Michelle Rubio is a freelance writer. She writes about almost anything under the sun – practical insights, design, bodybuilding, legal matters, insurance, technology, and business. She is particularly fond of topics concerning creative design and marketing, and how they impact small businesses.