The pros and cons of giving customers a discount?

[Starmix]

Giving discounts to our customers is our prerogative, however, in my business, I cannot give discounts. It's fixed. These are the pros why give discounts to our customers:

1. It attracts customers;
2. It boosts sales ;
3. It clears out inventory, and
4. It increases customer loyalty.

Regarding the cons, these are the following:

1. It reduces profit margins;
2. Can devaluate your brands;
3. Can lead to price wars, and
4. Can be difficult to manage.

 

[Sanjeev]

Pros is it attracts customer and increases the sales and cons is reduces profit margins. For me, I always check discounts before buying things.

 

[King Belieal]

Discounts are good sales boost but they must be done to ensure that the business still stays profitable.

 

[Starmix]

Giving of a discount must not be done regularly. It could be once a month when there are old stocks seen during the investory sales.

 

[Fidelia]

For me, I only give marginal discount to my customers. It helps to build loyalty among your customer base.

 

[Xtynehappy]

The main advantage for that is that you may attract more customers to your business whereas the shortcomings for that method is that its very costly and can burden the business so much.

 

[Kross]

The downside to all this discount sales is that you would not be able to build loyal customers with it. But the good side is that it can make your business more popular.

 

[Starmix]

Indeed it makes your business famous and popular. The customers are also inspired to wait for the next round if discounts which will be announced to those holders of a loyalty card.

 

[Trush Jodie]

Discounts should strategically be for products that needs to be sold out immediately.

 

[Starmix]

Giving of discounts must be given to the customers to avoid waste in case the expiry date is near. They should avoid selling expired products.

 

[itsmejob]

Giving discount maybe beneficial to the business because they can earn more customers. But some customers can be very abusive.

 

[Starmix]

Giving discount maybe beneficial to the business because they can earn more customers. But some customers can be very abusive.

it is only good once in a blue moon not in every moon shining. The business will collapse. It could be during fiesta or Christmas.

 

[Augusta]

If a business can they need to be giving a discount to customers to attracts them and in the long run will help them boosts sales

 

[Starmix]

Giving a discount gives the business owner headache. The customers may get used to it and may boycott the business center if wee no more discounts.

 

[Springtime]

Offering discounts can help to boost sales. I always buy more when the store offers discounts. But to the business, discounts may reduce profit margin.

 

[Starmix]

Offering discounts can help to boost sales. I always buy more when the store offers discounts. But to the business, discounts may reduce profit margin.

That's right customers will flock to the store. The business owner also knows the control to avoid losing. The discounted products are mostly old stocks.

 

[Nomad]

Discounts can improve sales, make your customers regular customers but giving discounts will also decrease your profits.

 

[Starmix]

Giving of profits must also be seasonal like during fiesta celebrations and Christmas days. People flock mall to mall to find the best discounted offer.