Most Common Types Of Discounts To Consider Today
Retail discounts are a common strategy used by businesses. But why are they offered and what types of discounts are commonly offered?
What Are Discounts?
Discounts are promotions that businesses use to cut their prices and boost sales. Usually, this involves knocking part of the price off a product. For instance, you might encounter a discount where a business offers a 50 per cent discount off a range of products.
Why Do Retailers Offer Them?
One the surface, it can seem as though discounts lose retailers money. However, the benefits they provide in response can really boost a business. Discounts can help attract new customers who wouldn’t have considered the products without an eye-catching price. Plus, they can spread the word about a retailer and make for a great marketing campaign. And on top of all this, they can help a retailer get rid of stock and clear space for a new range of products.
Most Common Types
Buy One Get One Free
Buy one get one free is a classic type of discount. This is where you buy one product and get another item free with it. This could be an identical item, or maybe a less valuable item packaged in. This is particularly useful for businesses that are looking to clear their stock, while also encouraging customers to make consistent, bulk purchases.
Seasonal discounts are extremely popular amongst retailers too. A seasonal discount is where you put special discounts on during certain periods of the year. It can be an ideal way of stimulating business during traditionally quiet trading months. For instance, a sports shop that specialises in cricket goods might out on discounts during the winter when customers are less likely to purchase cricket gear.
Special Group Discount
Another popular type of discount is where you offer reductions to specific groups. For instance, you might offer a teacher benefits discount at your retailer to recognise the valuable role teachers play. This can be an excellent way of rewarding one group of customers while also boosting your company’s reputation.
Order Specific Discount
Retailers might also run order specific discounts too. These are where the seller might run a special deal on certain inventory items in order to get rid of them. If a customer makes a bulk order, they’ll only get a discount on the specific inventory item that they bought, rather than a discount on the whole order.
Discounts can bring many benefits to businesses from clearing inventories to boosting reputation.