Asking For A Discount @ B.O.B.’S Cool Or Nah?
Updated: Oct 5, 2018
Is it disrespectful to ask for discounts when supporting black owned businesses or is it good business practice to have a solid sales strategy that includes discounts?
We've all seen them, memes shared and posted by small business owners scolding potential clients or customers who would have the nerve to ask for a discount. Many of us consider it an insult when someone suggests to us that we should consider reducing our price or rate. If this is you, I'd like for you to answer the following questions.
#1. Do you pay full price for everything?
#2. Do you avoid sales racks?
#3. Do you frown at coupon books and discount flyers?
#4. When purchasing for your business, do you attempt to negotiate rates?
#5. Do you pay the highest rent possible?
Truth be told, you've probably answered no to most if not all these questions. Saving money is a smart thing to do and just because you’re a minority owned business doesn't mean your customer or client has to now become a careless consumer just to support you. People seeking discounts are potential clients, customers ready to buy. It’s up to you to close them.
Just because they’re lining up for your product or service today, doesn't mean they’ll be lining up tomorrow. As a business owner, your primary concern next to building brand awareness should be building brand loyalty. The best way to achieve this is to be flexible with your pricing and rates by creating special promotions within your pricing schedule. If you’re not prepared to offer a reduced rate or price when asked, you should always have one waiting. Remember, the idea is to close the sale in front of you. Hold your price or fee but maybe offer a 10% or 20% off coupon on the NEXT purchase or visit. This gets you the sale or booking for the day and creates a repeat customer at the same time. Many businesses both large and small, are offering reduced pricing structures through platforms like Groupon and now, Urban Pulse Direct has created a platform for the minority owned business to do to the same. The difference is, we promote, educate, and support while you collect your own profits.📷
Here are a few ideas followed by reasons why small business owners should not be afraid of offering discounts:
Restaurants - Monday thru Thursday between 2 and 6 are usually trouble for you. Try offering mid day specials on drinks and or certain menu items that represent low food costs and high margins. Another idea is to offer delivery to local businesses with no delivery fees between those hours.
Party Rental Companies - Transform your business from a weekend business to a seven day a week business by teaming up with daycares, schools and local businesses to offer significantly reduced promotions. Bounce house Mondays for a school or snow cone and popcorn day as an employee engagement moral booster for local businesses are some great promotions to get you started.
Contractors - Everyone gets nervous when they have to call a contractor or handyman for a service. Put their minds at ease by offering free estimates on certain days or a percentage off if customers mention a promo code
Why and How to Discount
Traffic - Offering discounts for a limited time can draw customers into your store and most likely draw them into buying your product or service sooner rather than later. Make sure to advertise your sale clearly, focusing on the discounted rates or fees you will be offering and the exact time your offer will be reduced. Also, be prepared for increased traffic and schedule buys and staff accordingly. Increased traffic will place a demand on your customer service skills. Make sure you and your staff are trained properly.
Increased Sales - An increase in store traffic usually triggers an increase in sales. Drawing customers inside your store or site and enticing them to buy is not limited to your sale but also to regular-priced items. Here’s your chance to build the ticket. Customers are likely to walk around your store or your site and see other items that may not be discounted but they are willing to buy because they have already saved on other items on sale.
Sales Targets Most businesses have weekly, monthly, quarterly, and yearly sales targets, Do you? If you don’t we can help with that. Given the seasonal fluctuations in consumer buying behavior, you can curb lean seasons by offering discounts. This way, you are able to meet your goals within every period regardless of your monthly forecast.
Stronger Client Relationships Offering your customers value for quality goods and services can greatly improve their loyalty to your brand. This is especially true for first time buyers who were influenced to try your products because of your sale offer. Once consumers have tested your products or services, this can lead to repeat business and also generate positive word of mouth.
Monetized Inventory Here’s where UPD has been a huge help to small business owners. Discounting items allows you to dispose of old inventory and even items that you don’t plan on selling anymore. Place these items in front of your store or above the fold on your website to make them more visible to your customers and offer them at a bigger discount while being mindful of your cost per unit. Offering a targeted incentive to your customers done correctly, should not hurt your bottom line. In fact, these occasional discounts can help strengthen your customer loyalty and grow your customer / client base.
By offering quality products / services and committing to great customer service, you can be assured that your business will grow and we here at UPD can help get you started. List your business today and let us help you create an offer that will bring them running to your site or door.