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How to Discount in Retail: 10 Tips for Running Sales Without Killing Your Profits

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Fortune favours the prepared. See Terms Dismiss. The right discount method will vary, depending on your business, products, and customers. The best way to figure it all out? Implement various tactics and see what works best. As Craig Simpson, a contributor at Entrepreneur.

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A good way to protect your margins while implementing discounts is to set conditions. Rather than running blanket promotions e. Another condition could be to offer discounts exclusively to customers who are part of your loyalty program. Already a Vend user?

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  6. Another company that was able to successfully revamp their deal strategy is apparel retail chain Express. In addition to running fewer sale events, the retailer started moving their sale items to the back of the store, to increase sales for their fashionable but full priced products at the front. Doing so helped Express encourage customers to buy their new and full priced items, without necessarily excluding shoppers looking for deals.

    Discounts can drive more people to your store, so take advantage of the increase in foot traffic, by upselling or cross-selling. Encourage your associates to suggest products or upgrades to customers shopping around in your store. Create displays that can cross-sell or upsell for you.

    Going back to the jeans example, you could set up mannequins wearing well-coordinated outfits featuring the jeans that are on sale, so customers will have a better idea of what they could buy together with their pair of jeans.

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    An excellent way to earn more out of each transaction is by getting customers to notice items that they can purchase on the fly. Such items could include small accessories at the checkout counter, travel-sized merchandise, or practical everyday things. You can also consider offering exclusive discounts to specific groups of consumers ex. According to Marci Hansen, CMO of eligibility verification solution SheerID , this strategy allows retailers to leverage discounts without hurting their margins or being defined as a discount brand.

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    Further Reading. This handy resource offers 10 proven tactics for boosting retail sales and improving your bottom line. As we pointed out above, a creative and well-executed discount strategy with clear objectives can help you gain sales and attract the right types of customers. She writes about trends, tips, and other cool things that enable retailers to increase sales, serve customers better, and be more awesome overall.

    She's also the author of Retail Survival of the Fittest , a free eBook to help retailers future-proof their stores. Great ideas you discussed above.

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