Some business owners feel that the fastest way to lose sales is to give product discounts. Well, they may not be entirely wrong. For example, if a customer is still deciding on which dress to purchase and the retail assistant offers a 20% discount on the spot to try to close the deal. How would that action affect the customer’s perception of the business?

Firstly, the customer may think that the retail assistant is desperate to close the sale. They may also form the impression that the cost price of the item is a lot less than $40 if price can be dropped so quickly. This will not only make the customer form a perception about this transaction, but also affect their future propensity to patronise the shop. So, it may be important to offer discounts in advance. There are many ways to use discounts as a tactic to drive customers to the store.

While product discounts are attractive to customers, it is not very beneficial for business owners as their overall profit margin will be lowered. How can they offer product discounts without losing sales?

#Tip 1: Limit the sales duration

A long sale period could contribute significantly to a loss in profit margin. Not only does it directly impact how much margin you make per item sold, it also gives customer a lot more time to think about the purchases and to weigh the pros and cons, which may not even lead to a sale. Therefore, it’s not advisable to have long a sales period.

Flash sales work best for online business owners as it creates a sense of urgency for customers to purchase immediately. They’ll also tend to buy more when under time pressure.Try to keep your sales period within one to two days.

#Tip 2: Give dollar-off discount coupons

Customers generally dislike it when the brand puts up the sales notice that says “Get 10% off when you purchase $100 worth of products!” This is because percentage discount does not give a clear indication on how much the customer can save.

It’s recommended for business owners to offer dollar-off discount coupon, e.g. enjoy $5 off when you purchase with us today. This will entice customers to utilise the discount coupon when they shop at your store and increase the likelihood of them sharing the discount with their family and friends.

#Tip 3: Create surprises

Sometimes, the best way to win a customer’s heart is to show him or her that you care for them. You can surprise them by giving them a discount code during their birthday or a discount on their one month or one year anniversary with your brand!

Customers will feel touched by your gesture and will become your loyal customers. Isn’t this a perfect way to retain customers too? Online business owners should offer product discounts before the sale and there are indeed many ways to reward customers with product discounts. The aim is to encourage customers to purchase from your brand again and again.