As a consumer we all love a great sale, but what is that discount really costing your business? Is discounting the right answer to attracting customers?
With so much competition in the marketplace and savvy consumers who price compare on-the-go, it is not surprising the number of businesses that turn to sites such as GroupOn or LivingSocial to promote their businesses. But these discounts are costing you money.
If your margin is 40% and you were to reduce your prices by 10%, your sales volume must increase by 33%. That is a high increase to achieve, especially when you add the cost of advertising on these platforms in to the equation. These deals can result in so many customers that it will end up costing you money.
Discounting can also have a negative affect on your business, as customers may be a ‘one-time customer’. Customers seeking discounts are unlikely to purchase your product or service at full price so in their eyes you are devaluing your product.
Bartercard is not a discount service and while there are fees associated with being a member, the fees are based upon the amount your business trades within the network. Bartercard can help you grow your business by 5-15% in the first year … without discounting! Contact Bartercard now to find out how we can bring you new customers and help clear your excess inventory.