Using The Discounting Strategy To Good Effect

1. Using The Discounting Strategy To Good Effect

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7. In retail, merchants are often confronted with the dilemma to discount or not to discount. • Smart merchants know the predicament is not just confined to whether the brand image will be diluted. It is also about the right timing. • Intelligent marketers know it is possible to discount prices without sacrificing the brand’s image. • You need a clever discounting strategy that can involve isolating discounted products from the core or flagship brands. Why do even the best brands offer discounts?

8. Targeting different shopper demographics • Highlighting the brand and product value • Leveraging several sales channels • Intelligently using marketing approaches such as positive influencer appraisals • Even the best luxury brands have an off-price strategy. • This can be astutely crafted without compromising on the overall brand and product quality. The following 4 aspects matter a lot in marketing

9. Arrival of a new collection • It is the best time to clear last season’s inventory when a new collection arrives in a store There are several reasons why a retailer offers a discount

10. You smell new customers • Award them with a discount for taking interest in your store by offering “special bargains for new customers”. • Promoting a new product • Do a 24-hour flash sale with attractive discount offers

11. Holidays and festivals • There are always holidays and festivals on the calendar. Why not make use of them to offer discounts and push sales. • Induce shoppers to buy large orders • For example, “an extra 10% off on purchases of $ 100 or more” or a super wholesaler coupon

12. If not done properly it can have a negative impact on profits • It can deliver a wrong message that the product quality is below par Yet, we must keep in mind that discounting does not always carry rewards

13. It can trigger price wars; with the result bigger players can outdo smaller players due to the higher financial clout they have • The best way to preempt losses is to know your target audience and reach out to them effectively • And then focus on your marketing goals. • Smart marketing always wins

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