EPOS Direct Why you should stop offering regular discounts?
Lack of ConfidenceAre your customers confident in your products? As a business owner, it is crucial that you do not regularly place discounts on a certain product. This will show your customers that you are not confident in your product. It will also display your products as low quality. This will lead to the customers thinking that your products are discounted for a reason which will deter them from purchasing the product. This shows that offering regular discounts will limit the sales of your restaurant.
Customers will expect the same price next timeAs a business owner, it is important to understand that offering discounts will be effective in luring your customer in and will encourage them to purchase the product. However, when they return to your store, they will expect to pay the same price. This will lead to them not wanting to purchase your product as they will not believe that the product is worth the original price. This shows that offering regular discounts will damage the value of your products. If your customers expect to receive a discount every time they visit your store, you will struggle to generate sales.
Loss of customer’s trustDo your customers trust you? If you keep adding discounts to your products, your customers will become suspicious and will believe that you are hiding something from them. The discounts may cause the customers to believe that your products are made poorly or with low quality materials. This will lead to customers avoiding your business. This will decrease your competitiveness as your customers will lose their loyalty and may decide to shop at your competitors.
Cuts your profitAs a business owner, it is important to remember that when you offer a discount, you are losing out on money. This is because you are not selling the product for the correct price. Every time you sell a product for a discounted price, you will be losing out on potential profit. Your customers should purchase your products because they are of a high quality, not because they are cheap. As a small business, you may struggle to generate profit. If you regularly offer discounts, you will be limiting your profit which may lead to you being unable to generate a sufficient profit in order to survive.
How you can increase the sales of your business without discounting?You should not rely on discounts in order to increase your sales. It is recommended that you focus on the quality of your products as this will increase the value of your products. If customers know that they are going to get a high-quality product, they will be content to spend an extra £2 or £3. This shows that if your products are high quality, your customers will be more likely to purchase your products as they know that your products will satisfy their needs. This shows if your products are high quality, you will be able to increase the price of your products which will widen your profit margin. Remember, the key to success is offering high quality products.