5 Amazing Ways how discounts have impact on Business transactions

Shelly Grey
Jul 20, 2017 · 4 min read
Image showing discount notice

Every business interaction has two aims. The short-term goal is to make a profit whereas the long-term target is to create a dedicated consumer or customer base. Discount offers or loyalty programs have been part and parcel of every business interaction. After all, from a customer’s perspective, saving money is a core agenda across all segments of the business.

The importance of offering discounts is such that even e-commerce portals offer lucrative prices or best offers to the customers. No doubt, every marketing segment is unique with different parameters and attributes. It is not only about increasing the customer base; rather there is pure business logic as well about offering sales discount. Added to that, the rates which are offered also determine the business approach of any management and its future planning with any brand or product. Unlock Insights solutions gives a vivid picture discussing the impact of offers on business transactions.

  1. Meeting Business Target or Goals

Every business organization has got it’s on sales target, and it varies on the business cycle. It can be yearly, half yearly, quarterly or half yearly depending on the system of customized revenue calculation. No doubt, often it happens that to meet the sales target or to sell old stocks, there remains no other option but to gives attractive offers. Indirectly this is a case of forced price optimization. But in the long run, this helps in launching a new product or carries forward the profit obtained in a business cycle. So, not only giving discounts save money but also assist in meeting goals or targets.

2. Creating a Business Buzz

Many brands while launching a new product in the market begin with discount coupons. This has become a common trend in the smart phone based cab services these days where free rides are offered with specific coupon codes. This whole idea is to give a feel of the entire new product or service launched along with the free promotion. No doubt, this works in favor of the business organizations and has become a common way out.

3. Building Business Reputation

Nowadays attractive offers have become a trend which has emotional connect attached to it. For example, in the Indian market, during Diwali or Dhanteras, attractive discounts are offered on gold items. The sole reason is, many people consider it auspicious to buy gold at that time of the year. Side by side, such offers are standard catering to the needs of new born babies or army jawans — in other words, all such voucher codes or online coupons help in building a business reputation in the micro-level of the customer base. Many business organizations consider the micro level of the customer base as the sole target base and discounts play a pivotal role in all such business transactions.

4. Targeting Bulk Order from Customers or Consumers

The psyche of every consumer is unique. Usually, it is seen, until and unless there is a special occasion, people tend to buy small orders. Subsequently, the chances of getting huge profit margin are minimized. Offering attractive discounts, business organizations look forward to bulk orders from the customers. This has been a typical example when various departmental stores often go for ‘sales’ periodically. Close competition in the market within a niche consumer base also helps in opting for such an option which ultimately benefits the organization in the long run.

5. Changing the Habit of Customers in Microeconomic Terms

From an economic perspective, every seller wants to manipulate the buying behavior of a customer. Normally, every person has his or her idea or timing for the opted product. Giving a discount in between changes the whole idea and creates a new trend in between. These big business originations come up with exciting offers enticing the customers and increase the average sales in a dull period over a considerable period.

Discounts are integral to the success or profit of any business origination. The timing and volume of the discount are something which plays a crucial role in the outcome of the entire process. Hence it is important to read in details the services offered by Unlock Insights Solution where you will get the in depth research as well as analytics and understand how to decide on offering discounts on your product or brand.

Reference

https://hbr.org/2013/10/when-it-is-wise-to-offer-volume-discounts

http://www.investopedia.com/ask/answers/013015/how-does-high-discount-rate-affect-economy.asp

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Shelly Grey

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I am an enthusiastic writer with a passion to influence humanity through the pen and a good heart

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