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How to provide discounts

The main objective of discounts is to increase the turnover and strengthen the company’s position in the sales market. Sometimes an organization fails to get the desired response from buyers. How to provide discounts, attract a wide audience of customers and get the maximum benefit from it?

The cost of goods must be positively assessed by the buyer. Discount itself does not bring proper results. For the proposal to be able to interest the target audience, you need a specific reason. The reason for this may serve several conditions:

Sincerity. The company can admit its intentions and tell that the price reduction is due to the desire to revive sales and make their customers happy.
The more purchases, the larger the discount. For example, for the purchase of 2 products, the client receives a discount of 15%, and for three – 25%. Due to this, the flow of profit increases several times.
Test survey For example, an organization is trying to figure out how many people wish to use services if their price is reduced by 20%. Thus, the company will be able to find out whether the discount will be justified, and how many customers we can count on.
In order for the company to promote the product and attract new customers by offering discounts, it must report them in advance. You can make an announcement and warn potential customers about the launch of the program. To this end, the company can send letters or SMS messages to the phone. Buyers will be informed and begin to prepare their wallets in advance.

Often there are situations where the effectiveness of the discount is very small, and sometimes completely absent. Most often this happens for several reasons:

Pseudo-discount effect. The client ignores the offer if it is treated with disbelief. For example, often on the counters of stores there are price tags on which two prices are indicated, where the highest is crossed out.
Customers will treat the offer with caution if the discount on the product is high enough, but the company does not justify the reason for their offer.
Too high discount percentage can push the buyer away. There will be concerns and, most likely, he will take advantage of the offer of competitors.
Using discounts as the main pricing strategy is not safe. Over time, the company will be more difficult to return to the basic cost, to explain to the client the reason for the cost. To provide a discount on the 2nd, then on the 3rd, and so on. The purchase of goods is justified only in moments of stagnation and overcrowding in the market. In normal situations, discounts are reasonable to provide to customers who are ideally suited for the VIP category. These include customers who:

Pay in time.
Actively cooperate and provide information.
There are jointly implemented projects.
They are among the regular customers and have already managed to leave a good feedback on cooperation, and also were able to attract new customers.
As a result of lowering the cost of services, the seller’s profit decreases. But by giving customers discounts, the company achieves other equally important tasks. For example, new customers are attracted and sales increase. As a result, the buyer takes a better position in the market, and the brand acquires a recognizable and positive image. Following the increase in turnover increases the seller’s profit.

What should pay attention
Discount should be given only to customers who have already managed to use the services at full cost at least 1 time, since they can be deleted from among the “random” customers. That is why most businesses offer discounts only to regular customers.
A greater number of buyers trust in high quality and reasonable price, so the cost of the service must cover the costs of costs. It is more reasonable to provide a discount to regular customers who were able to generate revenue for the enterprise and significant product turnover.
Discounts should be regular, and promote the activities of the enterprise every day. Products can be sold with different discounts depending on the period of time. The price must go down and up, and all changes must be indicated in the advertisement.
Gifts and surprises to customers, especially on holidays, can serve as an effective marketing move. Such an approach will help to gain trust and authority.
Terms of discounts for customers are fixed in the marketing policy of the organization. In order to reduce the risk of financial losses as a result of disagreements with tax authorities, the company-seller is obliged to document the conditions and methods of its implementation.

The provision of discounts interests the tax authorities, and they begin to actively check the correctness of the application of prices. If they find out that as a result the price has become lower than the market value.

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