Discount is easy: a few marketing tips for your business
A large number of modern products are foundthanks to the efforts of marketers. Advertising is a centuries-old experience, it is difficult to establish the exact date of its appearance. However, marketing began to form at the end of the 19th century in connection with the industrialization and establishment of production in most developed countries. Its integral part is pricing strategies, and they include discounts. Such ways of increasing sales are almost the most ancient and arose almost along with the advent of trade. Discount is the simplest advertising of the goods.
In simple words
A discount is a reduction in the price of a product, service, orwork, but usually with the preservation of profitability or to go to zero (minimize losses). It is used to stimulate demand and increase sales. Often, discounts are reported in advertising goods or, for example, a grocery store. As a rule, they can be installed and cleaned several times a day, and in fact are a change in prices in both directions. Very often, such discounts are used in grocery stores, to stimulate demand at different times of the day or days of the week. From the point of view of accounting, this will not affect its management in any way, as a rule, only the purchase price is fixed, as well as the profit received. In general, stocks with a drop in prices surround us everywhere, for example, discounts in supermarkets or cafes.
If you go deeper into marketing, you can distinguish many different pricing strategies. The following will be listed those that are directly related to discounts:
- Sliding, falling price - a gradual decline in the price of the goods, to cover a larger market share, allows you to get additional profit after making major sales
- An advantageous price in relation to competitors is a good way to discourage customers or attract new customers. It is necessary to optimize costs in such a way that the price is lower than that of other firms
- Differentiation of prices of related products -a wonderful way to get more profit by raising the prices of the associated goods and reducing the basic ones, for example, discounts on toothbrushes are compensated by expensive toothpaste.
The most primitive, but, nevertheless, effectivethe way is to establish an unreasonably high price on the main price tag and its subsequent decline with the word "discount". This is very common in many department stores, consumer electronics stores and in supermarkets. It can work in a small shop, but with high traffic and a large flow of customers.
Percent of discount. In general, it can be any, depending on the initial price. Nobody forbids doing a reduction of either 1% or 99%, which, by the way, will attract a lot of attention and may turn out to be a good advertising action, but this should be done with the mind, as this can scare off consumers. The most common options are 10-25%, you often meet such discounts in supermarkets.
In general, it is better not to write a discount in percentage, soas this makes it difficult for the buyer to calculate the price and turns the trip into a store in the solution of mathematical problems. And this is not very like your customers. In this case, it is worth at least write a difference, which the buyer will save.
Rounding of prices. Figures matter, especially if it concerns discounts. Buyers respond better when the seller sets the exact prices for the goods, for example, 793 rubles 35 kopecks, rather than 794 or 792. In the latter case, the amount is less. However, in a situation with more accurate amounts, the consumer feels that the seller is more carefully analyzing the costs and costs associated with the production or sale of the goods.
Another method is the nines. Works great with expensive products, for example, with consumer electronics. A TV costing 10,000 is more likely to be bought for 9.999. At the same time, its purchase price can be 7000, and the initial price up to a discount of 14,000. The buyer more easily perceives the first figures in value, and creates a sense of economy, and if you inflate the original price, the goods will leave even faster.
Discount on the edge of profitability, to zero and even inminus. What for? Such a skid is a great way to free a warehouse or shelves for another product. This happens, and quite often, especially from manufacturers of goods, and not from shops. For the consumer this is a great way to buy cheaper, and for the seller - no less wonderful way to get rid of excess products, reducing or even covering possible losses.
It is possible to allocate in a separate group, as it is notjust a price reduction, and a whole advertising campaign. This method is a great way to bring additional customers. There are entire services selling coupons, they get a profit for selling discounts. As a result, the buyer can receive the goods and for half of its value. However, together with one buyer, most likely, many others will come. In addition, a rare customer does not like to receive a coupon, which is given a discount. This increases the sales and loyalty of consumers.