When and How should you Give Discounts to Customers

Web Design | on Jul. 17, 2011 | by 0 Comments

All commerce-orientated businesses know how strategic discounts can be offered to increase sales and attract new customers; however, this strategy can work both positively and negatively on your business. If you do opt for this strategy there are a few important issues to consider: the age of your business, the number of customers and how you operate your customer service and your price implementation.


Before you implement a discount strategy, decide if this will have a positive effect on your business, according to your different projects.

Decide why you need to apply discounts, before you do so work out what your tactics are. Ask yourself questions such as, do you need to offer discounts to counteract cheaper prices on another website? Do you consider that people will reject your product due to the price? Do you wish to offer discounts because customers are demanding them? All these issues can seriously underrate your talents as a business and waste your time and money.

You should not have customers asking for discounts, for this means you are not working a good customer service strategy or they are simply not your ideal clients. Those who keep asking for discounts are depreciating your work.


You should think of discounts in terms of appreciation for faithful clients, who are cooperative and loyal to your products or services. Avoid trying to obtain a customer by offering a discount this will devalue your business.
Avoid offering discounts to everyone and choose certain customers. Once you have declared you are about to have a large discount period, it can be difficult to go back to your original prices. People may get the impression that because you are offering discounts to everyone, the reduced price is in fact the real value of the product you are selling.

Use discounts only to provide appreciation to those loyal customers and only when you have a good number of customers, you can risk losing the income. If you adopt a general discount strategy, you may have a hard time convincing customers how valuable your products really are.

Discounts should be given to appreciate certain customer traits such as, punctual payments, fidelity, good relationships, number of sales and projects and referrals they have provided you with.


You really need to have an established customer base before you apply discount strategies, as this could cause budget problems. If you are a new business enterprise, use your skills to impress clients, such as good communications, quality products and business ethics and avoid low price strategies.

If you really cannot attract customers this way, try adopting appreciation strategy with small discounts if a client wishes to purchase a second service from you. When you have a larger number of faithful customers, it is easier to use a discount strategy by integrating a wider plan for loyal customers.

Discounts can be effectively used to show appreciation to a selected few customers who can bring more business and with whom you have a good relationship.

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