What are the Negative Impacts of Offering Discounts Too Often?

[Suba]

Offering discounts is a business strategy to boost sales, especially when sales are declining. Discounts can also attract new customers and retain existing ones. They can also be used to clear out old stock, build customer loyalty, and more.

However, many people believe that offering discounts too often can also have a negative impact on business. Is this true?

 

[Augusta]

You would be reducing the profit of the business this way. Unless one is able to make high profit

 

[eLdavis]

I believe this would lead to your customers only patronizing you when there is a discount and might not be willing to buy unless there is a discount.

 

[Augusta]

It can also damage brand perception, suggesting a lack of quality or confidence in the product, and trigger competitive price wars.

 

[Tobi]

Limited offers, discounts and other deals trigger a basic human response - fear of missing out. Marketers purposefully create that sense of urgency to motivate people to make a faster and sometimes even spontaneous purchase. In addition, limited offers are often introduced during peak holiday seasons to motivate potential customers to make a purchase faster. This trick is not new and has been successfully used for many decades.

 

[King Belieal]

When a business offers discounts too often, it can make the customers entitled to always expect lowered prices for the products of the business.

 

[Augusta]

Regular discounting can make products seem less valuable, leading to a perception of lower quality

 

[Fidelia]

When a business offers discounts too often, it would be hard for them to stay profitable sustainably.

 

[Augusta]

your customer view your product as lower quality, but it also trains them to only buy when there is a discount.

 

[kit_hung]

Limited offers, discounts and other deals trigger a basic human response - fear of missing out. Marketers purposefully create that sense of urgency to motivate people to make a faster and sometimes even spontaneous purchase. In addition, limited offers are often introduced during peak holiday seasons to motivate potential customers to make a purchase faster. This trick is not new and has been successfully used for many decades.

These limited offers and discounts are like ringing wedding bells. People rush in without even thinking. Marketers know full well that FOMO ignites a fire in people and pushes them to make quick decisions. The holiday season is when they play this trick the hardest because everyone is ready to spend money and they don't want to be left behind. This style has been played for years and still works very well because people like to feel special and get a good deal.