You will need
- - discount cards.
Determine the minimum selling price of goods, which will cover all costs and, as a minimum, will meet the breakeven point. Below this level, it is advisable to descend only in those cases when the need to get rid of the product is more important than the potential profits. For example, this applies to food, whose expiry date.
Install the maximum allowed price of the product, giving you the opportunity to develop a system of discounts. This price level you can maintain in the beginning of the season, the launch of an exclusive product or start up a new collection.
Develop a system of discounting for regular customers. For this purpose you can introduce a system of cumulative bonuses, discount cards or determine the level of lump sum discounts when a certain amount of the check. The most effective are discount cards with progressive discounts. This method encourages the buyer to commit repeat purchases. In this case, you must carefully consider the amount and terms of the discounts. Don't force your customers to save receipts for a substantial sum to obtain a meager discount. A discount of 5% issued already when you first purchase may not affect your profitability, but will increase loyalty of the buyer.
Consider discount on promotional periods. If you originally set a significant mark on the product, any action to stimulate sales will be more effective. For example, the 50% discount will definitely attract the customer. Consider in advance the possibility of such substantial price reduction, and then make sales at the most appropriate moment.
Enter the VIP discounts for the most valuable customers. In this case, you should focus not only on the constancy of the specific buyer. Customer value may be determined by other factors: its ability to attract many other buyers, or its status in shaping the image of your establishment.