Discount - Is it a good option to increase Sales

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Ripakshi
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Re: Discount - Is it a good option to increase Sales

#1 Postby Ripakshi » Fri May 08, 2015 12:31 pm

Indeed giving discounts is a good option to increase sales, but one should not forget the main aim for a company, i.e to keep their customers happy. This can be achieved only if they are happy with your product. If your products are not satisfactory, no matter how much you try, how much discounts or incentives you give, the customers wont come back to you. So, apart from discounts, importance should be given to the products.

abhiruppalit
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Re: Discount - Is it a good option to increase Sales

#2 Postby abhiruppalit » Fri May 08, 2015 12:26 pm

In this competitive world, one needs to attract customers and discounts are a good options. To increase sales, it is one of the most effective weapon in the hands of the company. The entire pricing structure of the product should be done keeping in mind the discounts that can be given to the customers. At the end of the day, it should be a win win situation for both the company and the customers. If the customers are happy, it can lead to positive word of mouth, that can help the company to grow.

sampritiimtn
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Joined: Sun Nov 23, 2014 10:45 pm

Re: Discount - Is it a good option to increase Sales

#3 Postby sampritiimtn » Tue May 05, 2015 11:26 am

Discounts are a great way to move stock or to drum up sales during a slow sales period. But discounts, loyalty offers and bulk pricing should include some planning to ensure that profits do not stop flowing in.
To run a business successfully without running into losses, we should know our gross margin, mark up and breakeven points and how will the rebated price affect the profit.
Now, discounts come in different shapes and sizes:
Its very important to pick the right one for your business. For instance, if offering a discount of 5% does not encourage customers to buy more, maybe offering services like free shipping or gift wrapping without cost would be a more attractive method of promotion.
Certain brands offer quantity discounts: It can be a percentage discount or "get one free" when the customer makes a purchase of a specified number of items.
There are some travel agencies and restaurants that offer seasonal or periodic discounts to their customers.
For instance: Mid-week special prices at restaurants, or surf shops offering a discount over last winter's stock.
The basic advantage of discounts are attracting a large set of customers without a big marketing campaign.

archanaimtn
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Joined: Tue Nov 25, 2014 1:57 pm

Re: Discount - Is it a good option to increase Sales

#4 Postby archanaimtn » Mon May 04, 2015 11:01 pm

Discounts, something that everybody looks up to before buying a product. It can help us grab that attention required from the customers. The buy one get one, buy one get two, extra 10 percent off etc, such schemes often pull customers to the products and can be profitable to the company.

As they say, keeping a customer happy is important and retaining them is even more important. This is because cost of getting a new customer is much more than retaining the older ones. Discounts can act like those magnets that can bring new customers to us. That added with good quality and service might just give us customers for life and help in building the brand value of the company.

But they do not always work. The Koutons story is a very good example. The bill board of 50% + 40% off imbibed in a lot of customers but soon the story went sour and the 1000 cr company had to shut down. They followed the price strategy of deep discounting, which helped them grow really fast, but in the wrong run did not give fruits to the company. Customers eventually understood the concept of marking the price high and then giving discounts, which eventually led to the failure of the company.

Therefore, it becomes important to provide quality and service to the customers along with discounts. A happy customer is what we want and it can happen only if he gets all of these in one package.

Namita
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Joined: Mon Jan 28, 2013 4:58 pm

Re: Discount - Is it a good option to increase Sales

#5 Postby Namita » Tue Feb 26, 2013 10:50 pm

Discount is really a good option for the companies to increase sales.But it is a good option only and only till the company is also promising the best quality of the product.And ofcourse we Indians just love to have discounts but with the quality product also.

There are many brands in the market which are just making fool of customers on the pretext of giving discounts.It is the demand of todays industry, it is motivational for the sales teams as they have to meet their stiff targets.It is the best way to attract the customers towards your brand, as you are offering it at low price then your competitor must be offering.

So discounts should be offered but keeping the quality as first and foremost....

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Shivani
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Re: Discount - Is it a good option to increase Sales

#6 Postby Shivani » Tue Feb 26, 2013 12:35 pm

No , i don't think that it is discount that really matters in sales because it's the quality that matters. if you don't have the quality you give discount to attract perspective customers. Brands like TNG offer 6 on 1 but the quality is not worth talking. Even after discount the changes prices are comparable to that of other leading stores than what the profit. They are just making fool of us. if it had been that leading stores afforded their loss on the verge of your profit then there would not have been any companies like monte carlo etc. All i want to say is that next time you go to any such store ask for the quality and not for discount. :roll:

prashant
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Location: Noida

Re: Discount - Is it a good option to increase Sales

#7 Postby prashant » Tue Feb 26, 2013 10:11 am

Increase in discount increases the sale is not compulsory...if this had been a case then brands like Koutons would have been ruling the market, or other brands would offer lucrative fluctuating discounts regularly..which actually do not happen. Increasing discounts increase sales is just an excuse nothing else.

Please Note:- Am saying increasing Discount...because today a certain percentage of discounts has become a necessity to close big deals, And going beyond a fix margin is justified in some crucial cases but offering these big special discounts is not justified, neither will it help in long time..

Today what matters more is perfect presentation of your product, if the product is presented in such a way that it matches the taste / requirement of prospect, then you'll be a winner even with a fixed price (no discounts)...

Hope we all remember the days when BATA shoes/sandals come with price like Rs.1999/- or Rs.1499/- and that too fixed no discounts, and people go for it without asking a discount of even those odd Rs.9/-. That use to happen cos people trust the brand, people love the product presentation of BATA.

Thus would say discounts definitely help increase in sales but increase in discount boosts sales is a myth...

ashish
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Joined: Sat Nov 03, 2012 12:00 pm

Re: Discount - Is it a good option to increase Sales

#8 Postby ashish » Tue Feb 26, 2013 10:11 am

Certainly, it can help in increasing sales as they help in enticing customers or can help in getting the payments quicker. But there are certain things that one should consider before giving high discounts :
1) It should be used for selected customers otherwise it can devalue the product and customers would feel that the your product is not as worth as the price you are asking for.
2) If used as a marketing strategy they can help a lot in sales. This is the reason one would often see many companies come with discounts on products on festival occasions or like recently we have airlines doing so for the bookings on certain days.
3) It should not be used just to retain customer but to show appreciation. For ex., if a customer is using your services regularly & making payments timely then giving a little higher discount than normal looks like you are appreciating him which can build a long term relationship with him.
4) It can be used to attract big clients who initially wants to try your services but once satisfied can go for more services.

deepak
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Joined: Sat Nov 03, 2012 11:59 am

Re: Discount - Is it a good option to increase Sales

#9 Postby deepak » Tue Feb 26, 2013 10:10 am

Yes it is the right option because price is one of the most important factor in sales & companies many times discount their products and services to increase sales.

The advantage of this approach is that it attracts attention and has the potential to get prospects that ordinarily would not buy to try out your goods and services. The hope is that once they experience what you have to offer that they will buy again.

To experience this you visit any retail store first at the time of season start & second at season end and see the difference in crowd you will surely realise how discounts increase sales..

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Nakul
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Re: Discount - Is it a good option to increase Sales

#10 Postby Nakul » Tue Feb 26, 2013 9:58 am

Everywhere we find that if targets are not being met the sales team comes with the option that let us increase discount and
it shall increase the sale .

In my opinion no it is not right that if sales team does not achieve target so we should give discount. Discounts are totally
decided my the team in the starting of the month that this would be the maximum discount we can give, whether the client
takes the product or not.

And if your product is good and client comes with discount which you have offered him the maximum and he tells you to give
more, so you can tell that sir this is the rock bottom price which we can give to you .And then that is all up to whether you
want to go ahead or not.

If your product is good then no matter whether you give discount or not the customer will definitely take like, if you go in
market and their is no discount in Coke, Pepsi or any product related to which you no is good, you will definitely buy it....


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