When You Should Be Offering Discounts
Can You Afford To Offer Discounts?
Depending on what type of business you have, will determine whether or not you should be offering discounts or coupon codes. If you are thinking about offering some sort of discount, make sure that your products are priced in away that you can still make a profit from it. If you can't afford to offer discount or coupon codes ever within your business, then you should think about raising your prices. You don't want to offer a discount and end up losing profits because of it. I would recommend that if you are trying to calculate if you can afford a discount, then you should look into purchasing a calculator that will show you percentages.
If you are comfortable with where you are at in your business, and don't think that you need to offer any discounts because you already have a lot of orders then good for you. If you are using discount codes to drive more traffic to your shop, make sure you are choosing the right discount that works with your business. Even if you don't offer discounts on all your products, make sure that the products that are included in the discount are at a price that will still bring in profits.
When To Offer Discounts
I personally don't offer discount codes on a regular basis. The only way that someone can use a discount code for my products is by signing up for my e-mail list. Other than that I usually only offer discount codes during. The reason why I don't offer coupon codes all year round is because the people that know me, know that I do great quality and that I am worth the price. As opposed to my competitor, who is priced $3 cheaper than me. They rather buy from someone who is slightly higher in price, and be reassured that they will receive a great product other than taking a chance on someone who is priced lower.
- Some people might choose to shop at Kroger instead of Walmart. While Walmart is cheaper, most people find that Kroger is cleaner, less busy and well organized. They would rather pay a little more by shopping at Kroger other than shopping at Walmart and pay less but it is over crowded.
Its also important that when you are offering discount codes, that you do it at the right time. And by that I mean, if you are just starting out with offering discount codes that you do it closer to the holiday season that way it will bring in more sales and help with conversions. Keep track of the discount offer you are testing. See which one is working best, and if it isn't doing as well as you wanted it to, figure out what about it that isn't getting people to use it.
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Which Discount Is Best For Your Business?
If you are unsure about what discount you should offer, then i would suggest that you ask the private group and see what it is that they are doing for their shops. You can also test them out by sending your followers a 1 time use discount code within their package or in a e-mail like i do. I recommend that you start sending discount codes to the people that are on your e-mail list. If you don't have a e-mail list started, this is the perfect time to get one going so you can use it to test new ideas and let your followers know when you come out with new products. That way you get something in return for offering them a discount on their purchase. Whether you send out a one time use discount code or discounts during the holidays make sure that you are still gaining profits from it.
- If your products are priced at $15, I wouldn't suggest that you offer a 25% off coupon. If you are wanting to offer a discount that high to attract more business, then I would raise your prices.
- If your products are priced at $25.99, then you could offer that 25% off and still make a profit. You don't want to offer a low discount to where they hardly see a difference in price.
Don't be discouraged if you notice that after you stop sending discount codes that your sales start to go down. There will be fluctuation within your business even if you did not offer any discount codes. Whether if it is because you stopped offering discounts, or raised your prices. You will find out that even after you raise your prices that most people will still buy from you. Its important that when you do send out a discount code that you do the graphic correctly as well. Make sure that the graphic is clear and easy to read without overwelmbing the buyer with information. You should have the discount amount (10%,15%,20% etc..) slightly larger than the other text. If you are only offering this discount for a limited time, make sure that the buyer knows that as well.
For example you can have your discount banner say:
- 25% off
Plus free shipping
48 hour flash sale
Sale ends Friday at midnight CT
Make sure that if the discount you are giving is only for a certain platform that you mention that as well. If you don't specify that it is only good on your Etsy shop, your website, or Amazon then you will get messages from people that complain that it isn't working. And that would be because it is only good for a certain platform. Depending on what you want to do, you can always accommodate their request by giving them the discount even thought it isn't available on other platforms.
Now that you have figured out which sale is right for you, click here to see where you should be posting your sale at.
How To Respond To Customers Requesting A Discount
If your business motto is not to give out discounts because you feel that your products are already at a reasonable price then don't be compelled to give one when someone asks for one. Just because someone is messaging you wanting to know if you offer any type of discount doesn't mean that you have to give them one. If you are worried that telling a buyer that you don't offer a discount will make them not purchase from you, then just word it is a polite way.
- Unfortunately I do not offer any discounts at this time. But if you would like to sign up for my e-mail list you will receive a 15% off one time use coupon code. Signing up for my e-mail list will also let you know when I do special offers and discount. If you have any other questions, please don't hesitate to ask.
Your name here
It's all about how you come across. If you explain to the customer that at this moment you don't offer one but if they sign up for your e-mail list, they can get a coupon code. If you simply respond to them " No I do not offer any discounts". Then most likely they wont purchase from you. Whether or not you are offering discounts, make sure that when responding to customers you always sound professional.
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