How To Develop A Discount System

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How To Develop A Discount System
How To Develop A Discount System
Video: How To Develop A Discount System
Video: How to Build Systems In Your Business? 2023, February
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The word "discounts" is magic for most buyers. Even a small discount can seriously influence the decision to purchase. The task of the owner of a trading enterprise is to build a system of discounts competently and thoughtfully.

How to develop a discount system
How to develop a discount system

It is necessary

discount cards

Instructions

Step 1

Determine the minimum selling price of the product that will cover all costs and, at a minimum, will correspond to the break-even point. It is advisable to go below this level only in cases where the need to get rid of the product is more important than the potential profit. For example, this applies to food products that are about to expire.

Step 2

Set the maximum allowable price for the product, which gives you the opportunity to develop a system of discounts. You can maintain this price level at the beginning of the season, launching an exclusive product on the market or when launching a new collection.

Step 3

Develop a discount system for regular customers. For this purpose, you can enter a system of cumulative bonuses, discount cards, or determine the amount of a one-time discount for a certain amount of the check. The most effective are discount cards with a progressive discount. This method encourages the buyer to make repeat purchases. In this case, you must carefully consider the size and conditions of the discounts provided. Don't force your customers to hoard large amounts of checks to get a tiny discount. A 5% discount, given already on the first purchase, may not affect your profitability, but it will increase customer loyalty.

Step 4

Consider discounts for the sales period. If you initially set a significant markup on a product, any sales promotion will be more effective. For example, a 50% discount is sure to attract a buyer. Plan ahead of time for such a significant price reduction, and then arrange a sale at the most opportune moment.

Step 5

Enter VIP discounts for your most valuable customers. In this case, you should focus not only on the consistency of a particular buyer. The value of a client can be determined by other factors as well: his ability to attract many other customers for you, or his status, which forms the image of your establishment.

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