As a seller, it is very important to offer discounts to your customers. It makes them happy and also helps your business to operate smoothly. The main reasons to discount your products include:
Introducing new product
When you introduce a new kind of product in the market, it will be wise to offer discounts initially. Since the product is new, customers have not heard about it before. To attract more customers, discounts should be given initially.
Increase your profit
Most people believe that giving discounts reduces the profit. But that is not true. The opposite happens. When there is a discount, the customers tend to spend more. While it is true, that the profit per product is less, but since the sales are high, the total profit is adequate.
If there is a National Holiday in any month, then it will be wise to give discounts on that date. On holidays, people goes out shopping in large numbers. Seeing a discount, they will obviously spend more, and as a result, your profit will also increase.
If some portion of your stock is lying unsold for a long period, it will be better to give discounts on them and sell them as fast as possible. Because if they are not sold quickly, they may expire and become useless. Hence, it is wise to offer high discount rates and get as much money as possible.
Sell in bulk
If you want to sell a large portion of your stock, then try offering bulk discount rates. For example, give discounts like, 10 percent off on purchase above 100 dollars. This will inspire the customers to spend more.
If for some reason, your brand has been in the news or one of your product has become a big hit, then you should try and take use of that opportunity. That will be a very good time to offer discounts, and attract more customers towards your brand.
One of the main reasons to give discounts is obviously to stay in the competition. If your competition is offering discounts, then you have no option left. Try to keep the discount rates lower than that of your competition, or at least similar.
If you offer regular discounts, then your customers will know that you care for them. If you want your business to survive in the long run, then customer loyalty is extremely important.