Is a Bargain a Bargain?

Good deals bring in more customers, right?  Maybe not. Some may shop only when items are discounted.  Others may clip coupons to save that extra dollar. So, does that mean it’s a solid business practice to provide discounts and coupons on your product or service?  Let’s take a look at both sides of this coin to figure out the answer to this question.

Are They Good for Customers?  Maybe.

Chances are if someone is in the market for your product or service, that person will compare costs across the board.  If the price is what matters, a discount or coupon may tip the scale in your favor with that special one-time good deal.  People like to save money, and if they are sticking to a budget, they only have so much that they can spend on an item. So, yes – if they can save money, that sounds like a good deal for the customer.

Are They Good for Customers?  Maybe not.

Here’s the catch, though.  Often if we pay less for something, we value it less.  Think of the top brand name items. They are usually the ones with the top brand price tags. A bargain price offered as a discount may seem like a last-ditch effort to lure a customer to buy something that will soon be updated and replaced. Also, what about the loyal customers who just paid more for it?  How will those customers feel? Not so good. Hmm. So maybe a discount or coupon isn’t such a good deal for customers after all.

Are They Good for Business?  Maybe.

A lower price will still bring in a profit.  Your hope is that the discount will bring in more new customers and you’ll make more money than if the price had not been changed.  More business means more profit, and right now perhaps your sales numbers need a boost. Maybe the end of the year is coming, and you want to show an increase from last year.  Or maybe a new product is soon going to be released, and you want to sell what you’ve got now. If the good deal is time-limited, people will have that sense of urgency to make the purchase. All in all, that sounds like a good deal for business, right?

Are They Good for Business?  Maybe Not.

What if those additional purchases are made using a debit or credit card?  There’s another discount, but neither customer or business profits from it.  The banks are making the additional fees to process the purchase. But how many people use cash anymore?  Another point – limiting the sales. Unless the bargain deal is limited in some way – like only during a holiday weekend or only to a certain group of people like retirees or those in uniform – your business could lose money allowing customers to save money.

What’s the Answer?

Just like many other questions, the answer is complicated.  Perhaps there’s some benefit on either side of the bargaining chip.  Regardless, those of you business owners wishing to increase sales must keep an eye on how much of an increase in business you actually could handle.  You’ll also want to launch such a campaign when times are slow and transactions are low. Instead of a discounted price, perhaps what your customers really want is snap-to-it customer service and pertinent communication about tips and updates.  Maybe the best deal for customers is five-star service. That’s not so often given anymore by most companies out there. Happy customers come back for more and bring with them neighbors and friends.

Here’s the real deal.  No matter what business decision you are making, it’s important to look at both sides of the coin.  Considering a matter from the perspective of your customers keeps you in better touch with their needs and desires.  Here at The Six Figure Mentors we offer a tried and true lead generation product and excellent customer service. The two of those are a bargain in themselves and keep our customers in place.  LEARN MORE and see why that is.  We’re here waiting for you!

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