All About “Discount”
In early days of my life me and
my mom waits for the Christmas sales to have some discount and we do a lot a
lot of shopping from Christmas sale. I remember I used to save a portion of my
pocket money to avail discounts in Christmas.
But as I mentioned in very
beginning that those were early days of my life, now it’s been more than 30
years. Now we are living in the world of technology, whole world is now just in
the finger tips of every individual. Every industry and market is growing
electronically that’s the competition has gone very dense.
A manufacturer of same product
to yours in some other corner of the world was never considered as your
competitor, but now it is!
Whoever is offering same
quality product is less price is just a winner and market leader in the world
regardless of boundaries, so the concept of discount, its phenomenon and its
needs we are going to discuss. So without further do, lets begin the topic
The term discount is very
common and we use it very frequently in our daily life, almost all of us know
what a discount is?
Even a 10 year old kid can tell
us when we buy something by paying a little less amount than original one, the
difference is called discount!
But there are more facts attached
with the term & concepts “discount”
Like why the shop keeper or
retailer is giving us discount?
Why he is losing his earning or
When shop keeper gives a
discount? Is there any special occasion for it?
Who has asked him to offer the
Now! Rather than diving straight
into the pool lets understand discount types.
In How many ways a discount can
3,4,5? No! there are several
ways in which a retailer or a shopkeeper or even an online store is offering
Discount Code, Coupon Code or
A discount code, coupon code,
voucher code is a specific and fixed reduction value either be in percentage or
in amount. It usually has terms and conditions & limitations with it, which
limits user to buy from specific segment or range of product.
Within coupon codes or promo
codes, there is a special type which is called site wide coupons here is an
example of a Sitewide coupon
The most interesting part of
Sitewide coupon is that it has no condition, limitation or terms in it. that
means whatever u want to buy from a hook to hole store, this mentioned discount
code will reduce the price of your total bill as per mentioned on the coupon.
There are further types within
The phenomenon applied here, a
discount code or reduction is applied or given when a customer order online.
Now! Most of us know where can
we get online coupons? But still for knowledge sharing
There are a bunch of websites
like Retailmenot, RetailReduction, offers.com, Savesbest etc. who are working
really well in offering voucher codes & promo Codes.
As mentioned above a there are
a bunch of websites who are offering online coupons but very few are offering
printable coupons which you can use in store while shopping physically in
store, al you have to do is just print that coupon and bring it with you.
Discount will be offered to you as per conditions and limitations.
Now come to the second type of
A word which wakes up our sub
conscious mind and our nerves start behaving hyperactively.
So, What Is a Sale and what is
Sale is special type of
discount offered to the people, a greater discount value is offered for a
limited period of time. Because of it buyers can get much value to their money
and this is the most popular and famous type of discount in shopping plat forms
either it is physically or on online.
There are further categories
into sale which we are going to discuss
Continuing the concept sale is something when
a huge discount offered to the customers within a limited period of time or for
a specific stock
When the time period (season)
becomes a reason then the sale is called seasonal sale.
The basic purpose of Seasonal
Sale is to boom up your sales even while stepping-in in the market.
Like you are in the early
summer days and captured 50% of the market share by decreasing the profit
margin, while other have the rest distributed 50% market share while having
normal or average profit margin.
“You set up sale for a few days
buy you make customers for whole life”
When a customer is succeeded in buying
something in the lowest price and no one else in his society had, he feels like
he has won the Olympic!
This winning feeling is more
than enough to make him remember your store or brand in his whole life. And
whenever he or someone else in his surrounding wants to buy again your brand
name will be in the top of the list.
Occasional or Festival Sale
sales are very popular and usually the biggest discount in whole year is
offered in this particular type of sale.
examples of these sales are Christmas Halloween, Black Friday sale, Boxing Day
sale, Labor day sale etc.. Most of people stop their regular shopping 3-4
months before these sales.
Early Bird Sale
Bird sale or pre booking sale is the sale on new stock or new variety, this
discount or sale is available on pre bookings or in regular ways. This is a
smarter way to promote and sell the new arrival stock in a couple of days by
just offering a little amount of sale.
sales are not dependent on any season, month or occasion it is totally the
decision of the brand when it wants to be happen and how to be happen.
in mind by offering any kind of discount either is in the form of sale or
coupon, a retailer or whole seller is never going into loss. They just decrease
their profit margin to capture more customer volume.
type of sale is:
Might have an idea about Clearance Sale!
clearance sale happen when a retailer or whole seller is clearing out his stuck
inventory or dead inventory, or under performing inventory.
usually he sell it to the price on which he bought it with minimum or no margin
because these deaf stuff Is a headache for him, he can use that space for some
well performing products.
sale also occurs in season changing days. Like; you might have seen that summer
clearance sale in the beginning days of winter.
A good shop keeper always tries to get the
full potential from his brand or shop
purpose of all these activities is to be active in market and move step by step
with the market trends.
mentioned all types of discount were that you are already familiar of, now
let’s discuss some other types which might be quite interesting for you!
let’s Explore some hidden common discounts which are mostly available on every
Sign up or first user discount
have seen signup or subscription pop up on every online store or e-commerce.
stores provide signup discount, whoever creates an account on their store can
avail a fixed valued discount on his first order.
customer discount is more important than his details. For brand or store
customer and his details are more important.
you signup anywhere the first thing you have to provide is your email address
while other things can be optional like; phone number, address, full name, card
details etc. which you have to provide at the time of purchasing.
the value of your money or discount. And store got your details, whenever any
sale or next discount season is coming up, new inventory, new collection arrives
the store keeper sends an email to his entire customers list.
to a research, impressions to the target customers have the conversion rate of
he sends email to 100 customers he can get an average of additional customers
which is at the end of the day increasing his sales. So this is how all it
term speaks about half of the phenomenon what you have to do is just to refer a
friend and for your that action a benefit will be offered to you, and sometimes
to your customers.
wants to grow his business and who don’t? So this is the greatest trick among
days are gone that people hire a full time sales person to work in specific
time of a day and you have to bare his salary and allowances and still sales
graph does not goes straight up.
modern means of marketing you make customer work for you, like you can see in
above the brand is offering
20% discount to refer his friend and not only for referring there is also a
interest factor for the fried who has been referred, he will also receive 20%
discount on his first shopping.
might have heard about loyalty points. This stage comes after meeting the
customer satisfaction level. These loyalty points are very popular in travel
tourism & hospitality industry.
points is a very smart way to retain your own customer and don’t let anyone
steal your customer.
The idea behind loyalty point is, they set an
estimate of amount of their service used equal to some points the more the
customers use the service or product more his points get increased.
these points reach to a certain numbers a loyal user can take the benefit of
example a free hotel room after 100 points, a free 100 miles on 1000 points.
reward value against points will never be more than 3%-5% of a onetime use of
service, but all mindset of customer is changed and he became loyal to you just
seeking that loyalty reward.
Offers or bundle offers
departmental stores you may have seen that some products are on promotion like
buy 1 & get 1 free, bundle offer of 3-4 products in pretty fewer amounts than
that of original
can see in image, there are 5 items are available in a bundle offer and in a
discounted price, usually items in a bundle are of same category or inter
related, like KFC “make it meal” offer is also a bundle offer.
know the requirements of his customers and then make a bundle which a user will
buy after buying the main product so they make a bundle and sell 5 products
instead of one with a just little lower profit margin.
most common and available offer on every second store is free delivery or free Shipping.
just a interest free service to the customers which get customer rid of paying
additional amount from the total bill of the cart this is the real discount I
think because you are getting a valued service free for free.
back and Rebate Offers
back and rebate offer is a trick to clear out the stock. Retailer does It so to
complete their targets given by the dealers, to make their performance better
in market or for some incentives against the sale target.
clears his entire stock in the same price and offers a 5% or some amount return
after a period of time. In this way customer gets what it wants, retailer
sellout all his stock in less time, the dealer and the company increased their
guys these we discussed 14 types of
my little information about discounts and coupons, in the world of digital
marketing the competition is very tough and it’s became very tough to sustain
apposition of a market leader in any industry.
why the concept of coupon, coupon codes,
codes, promotional deals & offers sales, cash back, rebate offers,
free add on services are just to attract customers.
might be wondering some times that after offering 60% discount what the
retailer is earning.
fact is, everyone is earning after all discounts and no one is going in loss.
product which has a selling price of $100, mention its price on tags $110 and
offer a 10% discount code in market. The product was $100 and you are now selling
it at $99 which is not a big deal infect, you got triple sized sales volume
against that $1 is a pretty amazing deal!
all for this topic! Hope you like the information,
in next topics!