Question

Topic: Customer Behavior

Avoide Discounts In Retail

Posted by Anonymous on 9/28/2005 at 12:37 PM ET 50 Points
I have a retail outlet of garments. It is been a general tendency of the coustomers of asking for the discounts even durin the season time when no discounts are offered. The problem is this if for example they are give a discount of 5% for the first time, next time when they come they ask for 10% this even affects negetively the other coustomers who are not given any discounts. And if those coustomers are not given discounts they dont visit the store again, kindly tell me if you have any suggestions to solve the problem.
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RESPONSES

  • Posted by michael on 9/28/2005 at 2:04 PM Accepted
    If you don't offer a discount then they'll not buy from you, correct? I'm always curious about this with our retail clients. Is it your goal to be the lowest price of all your competitors?

    Several options:

    1) Stop giving discounts all together and sell based on value
    2) Discount everything by a set percentage everyday. Example: "All goods discounted 10% during the week and 5% on weekends"
    3) Get personal information in return for discount so you can market to them more effectively
    4) Raise your prices by 10%

    Hope these get your juices flowing.

    Michael

  • Posted on 9/28/2005 at 4:44 PM Author
    Thanx for the answer Michael. I appreciate your first point but for the second point coustomers would ask us to inform us during that discount period and they will never buy it in full price. You even said to ask for personal information, but how can i use it for marketing.
  • Posted by Carl Crawford on 9/28/2005 at 7:30 PM Accepted
    Marketing is about KNOWING your customer, if you have information you can CUSTOMIZE the product for you clients so they will get more VALUE from your product offering. IF they get more VALUE they will be willing to pay you the price you want.

    It might only cost you an extra $2 or 3 dollars but they might be willing to pay an extra $30 to $40.

    It might be putting some beads on the garment, it might be making a bigger size to fit the large lady etc etc
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