Some business owners might think of discounting as a bad thing. After all, it involves lowering prices, which means less revenue. However, offering discounts is a great way to boost sales by enticing prospects with the additional benefit of a lower-than-usual price. Think of it as a win-win situation, where the customer gets a product at a low price and the business gets to make a sale. However, discounting can be tricky when it comes to actually applying it to your products or services.
This is where cloud-based sales applications (like Second CRM) can be powerful tools for managing discounts by essentially doing the math for you, allowing you to seamlessly integrate discounting into your marketing strategy. This post gives you 7 reasons to sell with a discount and how to do it in Second CRM.
Reasons to offer discounts
- Attracting customers: Who doesn’t love a good sale? Sale seasons often see a spike in consumer buying, which would be smart to take advantage of. Advertising discounts in the front of a store, at the home page of your website, or via social media is a great way to make customers aware of your sale and increase traffic into your store or site.
- Increasing sales: Typically, with increased traffic come increased sales. Potential buyers in your store or site would likely browse your offerings, even those not on discount, and may buy more. You can encourage this by offering a minimum spend discount, i.e. 20% off for minimum spending of $50.
- Rewarding loyalty: Additional bonuses for more referrals are also a way to encourage more referrals, potentially growing your client base.
- Build client relationships: Giving customers great value for good quality products, coupled with stellar customer service is how businesses build lasting customer relationships. Giving them a reason to try your product, sometimes a customer needs to make a product discovery, and may generate great reviews and recommendations.
- Reduce inventory: If stuff seems to be piling up on the shelves, a discount may be the answer. Discounting increases the chances an item will sell, which would free up inventory space for you to offer more variety to your customers.
- Meet goals: If you’re working on meeting a sales target, discounting items can help you meet and even surpass these goals.
- Save money: A discount for using certain payment methods can be a boon to your business. Credit and debit cards require an additional processing fee which cuts into your profits, so encouraging customers to pay in cash can help you save money in the long run.
Only users with permissions set by a Second CRM administrator can give discounts. This is to improve the consistency of prices and give you more control.There are two types of discounting that depend on permissions:
- Fixed discount: The discounted amount/percentage is set by a manager or administrator. This discount is fixed, which means the item it is attached to is always discounted until the discount is removed by a user with permission.
- Flexible discount: The discounted amount/percentage can be changed, but with limitations, i.e. only maximum 20% discount can be given. This type of discounting still applies only to users with permission.
This is a portion of the page where a quote is created in Second CRM. See here to find out how to work quotations, sales orders and invoices. The portion we’re interested in is this:
To give a discount, simply click on the blue [Discount] in the [Unit Price] column and enter the percentage or amount of discount in the given field.
Another option would be to discount directly from the total instead of specifying a discount for each item. This would be useful if all the items are to be discounted at the same percentage.
Note that this would subtract the amount from the number in the Items Total field, which is the total amount after adding the numbers in the Net Price field. This means if you already gave a 20% discount in Item Details and decide to give another 10% under Items Total, the customer would receive a total of 30% discount.
You can find out more about adding products and services to quotes, creating price books and more at the Second CRM User Manual.
Keep thorough records
Keep as much information in Second CRM as possible. Second CRM stores all of your quotes, sales orders and invoices so you always have a record of sales interactions, and can properly keep track of and reward frequent buyers. This will make a great customer service impression besides freeing up valuable brainpower.
Maintain a disciplined sales process
Sales has many crucial aspects, but a disciplined process is the most critical. Consider that process, manage that process, and use Second CRM to keep you focused and on-track. You’ll be more efficient, in control, and confident in what you can do.