Offering potential customers discounts on purchases is a way to quickly draw people into your store. Anytime you tell a customer that he can save money, you’re likely to get his attention. Discounts don’t only help your shoppers; they also help your business. From increased sales to improved reputation, discounts may be that one ingredient that can bring business success.
Because people prefer buying things on sale, discounts serve as a ploy to attract more people to your store. If your discount is only good for a certain amount of days, mention that when you advertise the discounted items. People are more likely to rush in and look around if they know they only have a few days to do so. Your store will experience more traffic, so you may need to schedule more employees during the discount period so service is smooth.
With increased traffic typically comes increased sales — and not only the discounted items. Because the discounts attract more people, you have more potential buyers for other items in your store, as most people will look around to see what you offer before making a purchase. For example, if your clothing store discounts your entire jeans selection, people will go to your store for the discount but also may buy other clothing items or accessories, such as jackets, shirts and belts.
Discounting items enables you to free up room in your store. Items that you don’t plan on selling anymore may sit in your store for months. By discounting them, you increase the chances they will sell, making room for new products. To catch every customer’s eye, move discounted products that you don’t plan on selling again to the front of the store.
A business that offers discounts to certain groups of people — such as the elderly or those enlisted in the military — may improve its reputation. When a business gives discounts to people who are in difficult situations or who may have financial troubles from a lack of income, that business shows it is making an effort to help people. Many people regard businesses as money-hungry, so any deviation from that perception can improve reputation.
Many businesses have weekly, monthly, quarterly or yearly sales goals. If a business is in danger of missing those goals, offering discounts can help the business meet and surpass planned sales figures.
In addition to more sales, discounts may help your business save money if the discount involves payment methods. Credit and debit cards result in additional fees to process, meaning that you lose money in comparison to cash transactions. By offering a small discount to customers who pay with cash instead of credit or debit, you help both the customer and your business.