Why Do Stores Offer Promotions And Discounts

There’s often a stigma surrounding the use of short-term sales in an effort to boost consumer interest. Some businesses wrongfully believe that using discounts to boost their sales is doing more harm than good— the reality couldn’t be more different! All successful companies are well aware of the advantages that promotions and discounts can have on their business models. Here are just some of the reasons these marketing tactics are used in the first place:

Increased Traffic For A Limited Time

Many businesses suffer from the occasional selling slump, and part of the reason is that they don’t have enough incoming traffic. A lack of consumers looking at any store can cut into their bottom line. For this reason, discounts are employed in an effort to boost traffic.

This is, mind you, not a permanent solution by any means, but a well advertised discount that’s only around for a limited time gets people through the door. With more incoming traffic during sales, stores also need to be well prepared to handle orders and concerns.

Increased Sales With Better Traffic

Why do discounts really make a difference? With the noted increase in traffic, sales get a boost as well. We have to account for the fact that not every visitor is going to become a lifelong consumer, but they may at least purchase certain items.

The beauty of discounts is they need not apply to all of the products for sale. In fact, most companies use select products to place on sale in order to motivate consumers to purchase others full price. When a potential customer sees something they like full price, chances are they will buy it. This is why luring in customers with discounts is such a great marketing tactic!

Sales Targets Are Easily Met

All companies have what we often refer to as sales quotas or targets. This means that a certain amount of money needs to be coming in at regular intervals to keep the company afloat. Unfortunately, buying behavior is almost always unpredictable and there are fluctuations in sales. That could spell disaster for a company just skidding by.

Discounts are able to curb potential falling sales and put negative forecasts on the back burner. Mind you, these one-time sales or discounts aren’t the only way to keep a business open, but they certainly help boost productivity in the long haul.

Turn Window Shoppers Into Faithful Clients

We are all guilty of the window shopping bug. More often than not, consumers check out products only to change their minds and not take a leap of faith. More than ever before, when money is tight in many families, getting people to spend their money is a hard task. Discounts and promotions are the only way to appeal to the crowd that’s ‘unsure’ about wanting to make a purchase. The sales price almost always does the trick and there is a 50/50 chance this person becomes a lifelong consumer.

Make Way For Fresh Inventory

Sometimes, products just sit and sit with very little interest. No business owner can predict whether a certain item will generate enough interest or simply fail. Many companies have these so-called duds on their hands, and the smart way to move this stock is to place them on sale. By doing so, old stale inventory can move quicker and make way for fresh products. Oftentimes, this tactic is also employed for seasonal items.

Discounts and promotions have their place in marketing and boosting sales. They are often responsible for drawing in traffic when it has died down and moving old inventory when there’s little interest.


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