Options to Increase Sales Other Than Discounts
Discounts aren’t always the best option for improving cash flow in your business. Numerous other options can help your business achieve more sales while not impacting significantly on your business.
In this article, we will explore ways to increase sales other than discounts.
Why Businesses Shouldn’t Discount
There are numerous reasons why businesses shouldn’t use discounts to increase sales. For instance, when the consumer learns that a product can be sold at a lower price, it can create mistrust between the consumer and the business.
It can also mean that there are times when sales are slower because consumers know you’re willing to sell the product for a lower price. And when prices are lower, profits are cut down, which can cause a significant reduction in the cash flow of the business and reduce funds for business growth.
That isn’t to say that all sales are bad. There are times when discounts can be an effective tool. But it is a balancing act.
Other Options for Discounting
Numerous other options for discounting can be very effective at attracting sales for your business.
1. Better or Higher Quality Service
One of the top options is to ensure what you offer is better or higher quality and that the service is superior to your competitors. Research has found that 58% of customers will pay more for the same product if the perceived service from the supplier is better. You might, for instance, prefer to offer a quicker service, more benefits, etc.
Think about how you can add to your service to make it look better. Even something as simple as adding a little flair to a report can enhance the quality of what is being offered.
Guarantees are an excellent way to grab the attention of the customer. They offer reassurance and build trust between the customer and the brand. There are numerous guarantees, such as money back, free service, or something else, depending on what you can offer. It demonstrates that you have confidence in the business and the product or service.
Guarantees should be on a time limit. Avoid unlimited or lifetime-guarantees. They aren’t valuable and often misused by customers.
Gifts are a valuable resource that can help you achieve more sales. Gifts are used constantly in sales from numerous brands. For example, in publications, gifts are used to encourage the purchase of a magazine or newspaper.
There are numerous types of gifts that you can give, and some of these can be very cost-effective. For instance, gift cards and vouchers are great gifts to provide and only about 25-50% of them will be utilized by the consumers.
There are several ways that gifts can be claimed. You could have them requested online, or you can include them inside the packaging when delivering the product to the customer.
4. Product Bundles
Another way to improve sales is to create product bundles. Product bundles get the audience to buy more and spend more at a store. While product bundles are a great way to expect more sales and improve cash flow, they are usually offered with a slight reduction.
Therefore, product bundles can be a double-edged sword as singularly, you’ll get more money, but the costs for making the sale can be higher.
5. Negotiating with Services/Goods
Another option is to negotiate with suppliers over the costs of the products. While this doesn’t increase sales, it improves profitability. You might also be able to lower your prices slightly, which can attract more of your audience to make a purchase.
Negotiating with providers can have problems, however, as sometimes it means that the quality offered is much lower. Therefore, you might want to consider whether getting a better deal is worth the effort.
6. Email Marketing
Email marketing is one of the best ways to improve sales for any business. Research has shown that ROI for email marketing is better than any other sales tactic, with approximately $44 for every $1 you spend.
Sending emails to those who’ve agreed to be on your mailing list can almost double sales. However, you have to follow legal codes. You must seek permission from the owner of the email address that you can email them. Otherwise, you can face significant fines.
7. Add Videos to Websites
Adding videos to your website can increase conversions by up to 80%, which can nearly double sales for your business. Websites can be hosted on YouTube, shared on other social media channels, and added to the website, which makes their investment useful.
For videos to work, getting the best production value is critical. Just using your mobile phone to take these videos is not good enough. Get a professional camera and use official editing software.
8. Incorporate or Become an LLC
Trust is a major factor when it comes to sales. And while there are some advantages of being a sole proprietorship, it doesn’t mean it is the best option for your business. Some people don’t trust these businesses because they don’t have the guarantees other business structures have.
Incorporating your business or registering your business as an LLC can automatically build trust between you and your potential customers, and help you to get more sales.
Final Word: Options to Increase Sales Other Than Discounts
There are numerous ways to increase sales other than with discounts. Above is a list of some of the most popular and cost-effective ways your business can increase sales. Some of these are simple things you can add to your product or service; others are how you attract new sales to your business. Finally, there is the option to learn to incorporate your business.