The bitter side of discount pricing: when you should offer a discount

A discount pricing can be one of the best marketing tools and can boost sales for small business. Customers usually love coupon codes and buy products with lower price, however, discount pricing has bitter side and can damage your price integrity if it's not done in the proper way.

One thing to remember is that, pricing discounts take the focus from the value and placing it with the price and if it's done with no good reason, it will make your customers wonder why they are getting this discount, and may question the quality or the value of your products. Although people enjoy buying with lower price, but they want to get high quality products too.

Also, if your discount continues for a long-term, customer will find it difficult to buy your product with its regular price since they were buying it for the lowest price for a long period.

A discount pricing can get outstanding results if used for the right circumstances, here are some ways to use discounts most effectively:

Bundled deals
Bundled deals increase the transaction size and it makes a lot of sense in the customer's mind and they will think about it like a good deal, it has no harm to your product value or price integrity since you are offering the discount if the customer is looking for buying more products.

Seasonal sales
A discount on seasonable products can increase your sales, it's very common and expected by customers. It's a good reason for discount without harming your product value.

New product
I's a good reason to discount if you are introducing a new product to the market, customers will urge to buy and try the product also it will start word-of-mouth advertising.

Large quantity orders
It's a common practice that when you buy more you will save more, customers who buy larger quantities usually expect an offer or discount for their larger quantities than the average buyer.

To lock in customers

When your customer has a little hesitating on buying, a small discount may give the extra incentive they need to buy your products, you can offer a lower price or add more to close the deal.

Again, discount pricing is tricky business and need to give clear messaging and details on discounts; otherwise, your customers may feel as though you're attempting to fool them.


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