The quickest and easiest way to drive more online sales is to offer discounts on your products.But most businesses wonder whether that will hurt their business?
Today i am going to share with you whether sales and discounts hurt your overall business or not!
The simple and short answer to this question is yes! When you offer a lot of discounts some people get used to the idea and the won't buy in the future unless there is a sale or a discount!
But that is Ok because not everyone thinks like that. I mentioned the short answer but here is the long answer by offering discounts and sales even though it could hurt you a bit your total revenue and your total profit margin is usually larger,assuming that your sale or discount is not putting you in the negative.
If your margin on your product is $15 but you are only charging $5 for the product then of course yo are going to lose money!
In general, when you are doing sales and discounts you want to time to holidays and special events.For example it could be fathers day or mothers day you pick the occasion!
Ideally you should do a sales promotion once a month,this will drive a lot of additional revenue.
So if you want to keep growing then offer sales and discounts but don't offer it on your main product items!
So do not let someone just buy one product for 50 percent off. Instead you should be doing this
that offer your customers sales and discounts only if they buy products in bundles!
When you start doing that,that is when you sales will drastically increase or you can put up offers like
If you buy products worth a $100 dollars then we will give you 10 percent off and shipping will also be free.
So the key is to incentivize people with your sales and discounts.Don't just take your normal products and say 'hey if you buy them now you will get 40 percent off!'
It has to be a special offer where you are bundling,packaging together products so then that way you will not tick off your existing or older customers and it encourages people to spend more money on your items.